And the existing fleet is rapidly being saturated. Building new tankers to serve as floating storage is economically unfeasable (negative ROI), though repurposing idle fleet capacity is rational as a means to recover some variable costs. The activity doesn't make profit, rather, it slows losses.

Floating storage levels for crude are already double what they were a week ago [0]

[0] https://uk.reuters.com/article/us-global-oil-tankers-storage...

and the prices of storage as well.[1] ( Article quite old, but argument stays )

[1] https://www.reuters.com/article/us-global-oil-shipping/oil-t...

Sure but those are limited as well, and their capacity would probably run out. Those tankers would have to basically be docked and not be able to transport anymore. And then?

The point is that so long as there's weak demand, the oil's going nowhere, and the ships would be sitting regardless.

Though otherwise agreed: capacity is rapidly being saturated, and this isn't much of a win for shipping companies either.