China's Yangzijiang Shipbuilding has sold a pair of MR tankers in a resale deal that reveals how asset values continue to hold firm — despite the dire straits of oil freight rates.
The newbuildings, which the yard had been building for its own account, fetched a much higher price than when it divested a similar pair of ships just three months ago.
According to Athens-based brokers, Greek interests are paying between $32.8m and $34m respectively for the 49,600-dwt Yangze 18 and Yangze 19 (both built 2021).
That represents an increase from the $63m that Celsius Shipping of Denmark is said to have paid for two sisterships en bloc at the end of March, as TradeWinds reported.
Shipbuilding sources and data provider IHS Markit have identified the buyer as Chandris (Hellas). Managers at Chandris and Yangzijiang declined to comment, citing standard company policy to not discuss commercial transactions.
Tanker values have increased even for vintage VLCCs, one of the market segments hit hardest by the freight rate slump. As TradeWinds has reported separately, Greece’s Maran Tankers fetched a surprisingly firm price for its vintage 319,900-dwt Maran Triton (built 2003).
Animal spirits
Some analysts see this as evidence of animal spirits being alive and kicking, in the teeth of sluggish freight rates.
“Sellers appear to be the ones holding back at the moment, expecting that the premiums over current values, once rates start improving, will be worth the wait,” analysts at Athens-based Seaborne Shipbrokers said in a report.
Tanker sale-and-purchase activity has picked up considerably in the first half of this year, according to brokers. Allied Research said that 278 tankers worth $5.46bn changed hands compared with 186 ships in transactions valued at $2.9bn in the same period last year.
Tanker companies abound with bullish talk lately, with firms such as Okeanis Eco Tankers (OET) and Tsakos Energy Navigation (TEN) expressing confidence that as oil consumption recovers in post-Covid economies, tanker markets will soon see spikes like the ones currently benefiting containerships and bulkers.
Brokers have also been pointing out that a considerable part of the tanker fleet has been sustained in recent months by lucrative employment in US-sanctioned trades.
According to brokers, interest focuses on 10-year-old aframaxes, LR2s and MRs. Greek and European brokers identified IMS, a notoriously low-profile company based in Piraeus, as the buyer of the 50,700-dwt Lara (built 2007) for $10.8m.
Both IMS and its Greek peer Empire Navigation — the Lara’s current owner — did not respond to a request for comment.
Between early 2020 and the start of this year, IMS and other companies — believed to be controlled by the Gialozoglou family — shook off eight vintage product tankers, mostly sold for scrap.
However, the Gialozoglou family has been replenishing its fleet since then. In February, IMS bought a pair of 105,800-dwt aframaxes from Teekay Tankers, as TradeWinds reported.
A month later, IMS was seen taking a dip in the stable of vessels in the former Ocean Tankers’ fleet, but its reported purchase of the 109,000-dwt Ocean Queen (built 2008) has not been confirmed yet.
Oaktree takes tanker dip
Big names such as Oaktree Capital Management continue to finance tanker acquisitions.
IHS Markit shows the US investment giant as being involved in the sale of the 47,400-dwt Salaminia (built 2007) in late May.
The vessel has now emerged as the Fos Power in the fleet of Greece’s Aerio Shipmanagement — a company led by former Deutsche Bank executive Athanasios Kossidas.
Speaking to TradeWinds, he confirmed the ship had been bought for $9.7m by clients of his firm, which he did not identify.
"This is just the first in a series of ships in that age category that we intend to buy, up to aframax size," Kossidas said.
According to IHS, Oaktree recently had a hand in a deal involving the 105,400-dwt Atlantis (ex-Stavanger Bliss, built 2008).
Greek buyers are also suspected to be behind the $7.6m deal for the 47,000-dwt Jasmine A (built 2004) — a vessel controlled by China’s Island Navigation.
Moving in bigger categories, unidentified Greek or British interests are said to be behind an $18m deal for the 105,900-dwt aframax Champion Pleasure (built 2008).
