Brokers are reporting increased activity once more in tanker sale and purchase (S&P) markets.
Market observers believe interest in MRs and aframaxes in particular indicates new highs for asset values are on the way.
Eva Tzima, head of research at Greece’s Seaborne Shipbrokers, said the expectation of constant disruption in oil trading, together with the possibility that the situation could escalate in the coming months, is keeping investment appetite in the sector at a multi-year high.
The only segment and age group in which buyers have at least some choice among a few candidates is 16 to 17-year-old MR tankers, compared to very restricted availability of bigger or younger vessels, she argued.
“The most recent opening offers by those bidding have been very impressive, and indicate that asset values are heading towards new highs,” Tzima said.
“Even more limited private transactions that have been taking place, concerning A-list owners snapping very modern tonnage of bigger deadweight, constitute an additional - and very substantial - vote of confidence in the sector’s prospects,” she explained.
TradeWinds reported earlier this week that Norway’s Hansa Tankers had sold the 33,600-dwt MR1 Skarven (built 2009) for $29m.
A Far East buyer was linked to the deal by brokers.
The price was higher than several other recent sales of similarly sized and aged ships, they said.
Greece’s Allied Shipbroking noted “a strong shift” had taken place in the tanker market, “with activity appearing considerably improved.”
“While the MR segment had once again a modest presence, aframaxes took a step forward, with a modest flow of vessels changing hands as of late,” the Athens shop added.
TradeWinds reported Greece’s Vafias Group offloading two aframaxes into China for $83m combined.
The 113,000-dwt Gstaad Grace II (built 2009) went for $42m, while the sister ship Afragold fetched $41m.
Big tenders disappoint
In the VLCC sector, Norwegian shipbroker Cleaves said a couple of big tenders had disappointed on price.
South Korea’s Korea Line Corp had invited indications of bid levels for four big tankers built in 2019 and 2020.
Brokers had suggested $120m each, or $480m all-in, as a potential price tag, but sources indicated offers came in at least $50m below this en-bloc, despite strong interest.
“So far the money put on the table has been less exciting,” Cleaves said.
The broker argued forward deliveries of the ships towards the end of 2024 and into 2025 could account for this.
Similarly, an offer of two VLCC newbuilding slots for 2026 deliveries by South Korean shipbuilder Hanwha Ocean was also underwhelming.
TradeWinds reported talk of a single offer in the region of $126m, significantly below the $130m-plus asking price specified by the shipyard.
