Algoma Central has acquired two secondhand product tankers from Valloeby Shipping to replace two older vessels trading on the Great Lakes.
The Canada-based owner of bulkers and tankers trading on the Great Lakes has bought 18,894-dwt sisterships Chantaco and Chiberta (both built 2007) from the Malta-based chemical tanker owner.
Algoma Central did not disclose the vessels’ purchase prices, but VesselsValue put Chantaco’s market value at $10.4m and the market price for Chiberta at $10.3m. They are both flagged in Malta and were built by RMK Marine of Turkey.
“The vessels are high quality additions to our product tanker fleet and mark an important step in our ongoing fleet renewal journey,” Algoma Central chief executive Gregg Ruhl said in a statement.
Algoma Central will operate Chantaco, to be renamed Algotitan, on the Great Lakes and St Lawrence Seaway once it is delivered in early 2023.
Chiberta, to be renamed Algoberta, will start trading in northwestern Europe and will be commercially managed by Algoma Central partner Furetank AB of Sweden.
Chiberta will trade in that region until Algoma Central includes it in the domestic fleet that serves the Great Lakes and St Lawrence Seaway.
Chantaco and Chiberta will replace 16,800-dwt sisterships Algosea and Algoma Hansa (both built 1998), Algoma Central told TradeWinds. The shipowner would not say whether the ships would be scrapped or sold.
The Algosea has a market value of $5.14m, while the Algoma Hansa’s value is estimated at $5.03m, according to VesselsValue. Both ships have a demolition value of $2.82m.
