With VLCC spot rates reaching their highest levels in years and showing no sign of slowing, secondhand transactions in the sector accelerate.

Deals are reported for ships on both ends of the age spectrum — from modern, scrubber-fitted vessels to units that would have been normally expected to be scrapping candidates.

The most eye-catching transaction reported recently by several brokers in Athens and the US concerns a pair of sisterships under Singaporean control.

The 299,500-dwt Neptune M and Pacific M (both built 2019) are changing hands for more than $180m combined.

The price seems low, considering that ship valuation tools Signal Ocean and VesselsValue estimate that each of the two vessels is worth around $100m.

The low price may be due to the fact that the deal is said to include the remainder of a time charter far below current market rates.

TradeWinds reported in 2019 that the scrubber-fitted Neptune M and Pacific M were on long-term time charters with the shipping unit of oil major BP at about $33,000 per day. Information on the Clarksons data website, however, suggests this is no longer the case.

The situation around the ownership of the two tankers is not entirely clear either.

TradeWinds reported in 2017 that they were ordered as newbuildings at Hyundai Samho Heavy Industries by Singapore bunker company Sentek Marine and Trading.

After completion, however, the two ships emerged with another Singapore company called Singfar International, which currently lists them on its website.

Managers at Singfar weren’t available to comment on the phone and did not immediately respond to a request for comment sent through the company’s website.

Attractive oldies

Much older VLCCs continue finding eager buyers as well, commanding premium prices.

Bahri is said to have sold a VLCC. Photo: Piet Sinke/CC BY-NC-SA 2.0

Bahri, whose executives did not respond to a request for comment, is said to be offloading the the 316,500-dwt Shiblah (built 2003), its fourth vintage VLCC to change hands this year.

All ships sold by the Saudi shipping major in 2022 have been linked to Chinese interests and each has fetched a higher price than the one before it.

Bahri divested the 316,500-dwt Tinat (built 2002), since renamed Tina 5, at the end of July for $30m. The Shiblah is reportedly going for $43m now.

The Saudi company is probably taking advantage of upbeat market conditions to sell its older ships while making space for younger ones.

Shipowning sources told TradeWinds that Bahri has been on the lookout for a modern VLCC unit and has already received proposals pricing the offered tonnage at between $108m and $110m.

Returning to vintage VLCCs, a higher-than-expected price of $49m has been reportedly achieved by the unknown owners of the 304,000-dwt City of Tokyo (built 2004).

The Japanese-built vessel has been registered since 2020 with Ashley Marine — a one-ship entity based in Liberia.

An even older ship said to be on charter to Vitol, the 305,200-dwt floating storage and offloading unit Brilliant Jewel (built 2002), has gone to undisclosed buyers for $40m, according to Athens brokers.

“Higher rates have resulted in another busy week on the wet market, especially in the VLCC sector,” Xclusiv Shipbrokers said.

Additional reporting by Lucy Hine and Jonathan Boonzaier