Korea Line Corp looks set to spark a feeding frenzy among shipowners by putting its four modern VLCCs up for sale.
The vessels, built in South Korea in 2019 and 2020, seem likely to establish a new secondhand price benchmark in what is still a very firm sale-and-purchase environment for younger ships, brokers said.
Tender documents seen by TradeWinds show the tankers are the 300,800-dwt sisters SM White Whale 1 and SM White Whale 2, the 299,700-dwt SM Venus 1 (all built 2019) and the SM Venus 2 (built 2020). All are scrubber-fitted.
Korea Line, owned by SM Group, could achieve a bumper payday, as it has owned the vessels since delivery.
The SM Venus duo cost only $85m each to order and the other two just $88m.
VesselsValue assesses the SM Venus 1 as worth close to $118m now, with the others valued at more than $119m.
The quartet has gained nearly $120m in value over the past two years.
These are the South Korean owner’s only VLCCs, although the fleet does number 39 other vessels, including bulkers, a handysize tanker, LNG ships and car carriers.
The tankers will be the first VLCCs of this vintage to be sold since December, when a number of ships changed hands for $114m and $116m.
Fishing for values?
Norwegian shipbroker Cleaves said: “We expect to see a new benchmark for modern VLCCs shortly.”
Another broker told TradeWinds: “Let’s see who has the appetite at those higher levels.”
But the source said Korea Line could simply be trying to get price ideas rather than signalling a definite intention to sell.
In December, Saudi Arabia’s Bahri bought four VLCCs built in 2019, two each from VS Tankers and Thenamaris, with the price given as $114m.
Unidentified Middle Eastern interests were then said to have snapped up the 300,000-dwt Delos (built 2019) for $116m from the fleet of Embiricos family-controlled Aeolos Shipmanagement.
Korea Line said in its tender that an en-bloc sale is preferred.
Serious interest must be registered together with price ideas by 10 April. The ships are offered charter-free.
The SM White Whale 1 and SM White Whale 2 would be delivered in Singapore or Japan, with dry-dockings due in December.
The former is not available until the first quarter of 2025. The second ship has a delivery window of August to October this year.
The SM Venus 1 could be handed over in the fourth quarter, and its sister in the first three months of next year. Delivery would be worldwide for these two.
Dry-dockings are due in September and January.
Prices for older tankers have been falling as opportunities shrink to operate them in sanctioned trades.
But interest is expected to be firm for modern units.
