the size of the fleet can be adjusted by ordering new ships and scrapping old ones
The longer--term adjustment mechanism balances supply and demand through the three other markets
the sale and purchase market, the newbuilding market the demolition market < Figure 4.15> adjustment of the tanker market over the period 1980-1992
In 1980 (Figure 4.15a) freight rates were moderately high at $15,000 per day,
with the demand curve intersecting the ‘kink’ of the supply curve.