Aframaxes remain the most sought-after type of tanker in the secondhand market, with another unit about to change hands at an elevated price.
Several market sources in Athens relate that the 115,800-dwt Aegean Myth (built 2006) has been committed to Chinese buyers for about $37.5m.
This is at the higher end of the $37m to $37.5m range that the South Korean-built vessel was being negotiated at.
“These are strong figures,” one broker told TradeWinds.
Generic, on-the-spot valuations produced by VesselsValue and Signal Ocean suggested a lower value of between $36.2m and $36.7m for the ship, which has no ice-class notation and is not equipped with a scrubber.
This means the premium it achieved probably has to do with other factors.
One of them might be that it will not have to pass a special survey for three years.
Another could be the reputation of Arcadia as an established, traditional owner with ties to big charterers.
According to Clarksons, the Aegean Myth completed voyages this year for Repsol, Unipec, Eni, Chevron and BP.
Aframaxes top of the class
These factors come on top of a soaring market for such vessels, which shows no signs of slowing.
According to research published this week by Eva Tzima, head of research at Athens’ Seaborne Shipbrokers, values for 15-year-old aframaxes have jumped by 12% this year — the biggest increase in the tanker universe in this age, alongside suezmaxes.
This appreciation is underpinned by solid aframax earnings, which have been beating all other types of crude and product tankers for a second consecutive year.
Aframaxes in general have achieved average time charter equivalent earnings of nearly $46,000 per day in 2022 and 2023.
“Suezmax and aframax asset values have noted the biggest upside, with … the latter sustaining the impressive 2022 performance, which is probably why they remain the most sought-after size,” Tzima wrote.
This is an opportune moment for Arcadia to offload its oldest aframax, which it has been trading since delivery from Samsung Heavy Industries.
The three other aframaxes in its fleet of 10 crude tankers are slightly younger sister ships of the Aegean Myth — the 115,800-dwt Aegean Nobility, Aegean Harmony and Aegean Power (all built 2007).
The company seems to be putting more emphasis on suezmaxes instead, the type of vessel that accounts for the remaining six tankers it has on the water.
TradeWinds reported this month that Arcadia was believed to be behind an order for two conventionally fuelled, 158,000-dwt crude carriers disclosed by HD Korea Shipbuilding & Offshore Engineering on 10 November at $85m apiece.
Arcadia did not respond to requests to comment on the newbuildings and the Aegean Myth sale.
The deal is not the only one to highlight the strength in the aframax market and the continued interest such vessels attract from buyers, despite their elevated prices.
In another transaction reported recently, clients of Taiwan’s Jie Sheng Ship Management reportedly achieved $26m from the sale of the 111,900-dwt Concord Express (built 2003) to United Arab Emirates-based buyers.
TradeWinds already reported about Torm reportedly selling the scrubber-fitted, 109,700-dwt Torm Marina (built 2007) for $36.5m.
Last but not least, US-listed Performance Shipping disclosed last week an asset play in which it achieved a $17.3m profit from the $39.3m sale of the 115,900-dwt P Kikuma (built 2007).
