A dozen or more Japanese VLCCs of a similar vintage to the NYK-owned 300,000-dwt Taizan (built 2002) are set to hit the sale-and-purchase (S&P) market in the coming years as the country’s owners progress with their fleet renewal.
Kyoei Tanker this week ordered a VLCC at Japan Marine United (JMU), giving it three VLCCs on order, the first to be delivered in April next year.
Brokers believe the three newbuildings are likely lined up to replace the 300,000-dwt VLCCs Kai Ei (built 2004), Jin Ei (built 2005) and Toshi (built 2007).
The tankers are fast approaching 15 years old, an age at which Japanese operators usually stop trading these large tankers, while ballast water treatment systems will have to be fitted at the next dry docking, a factor that is likely to encourage the early sale of the ships.
Major tanker owners such as K Line, NYK and Mitsui OSK Lines (MOL) also have a number of ageing VLCCs that S&P brokers are eyeing as potential sales candidates.
K Line has four VLCCs lined up for delivery over this year and next and the ships are likely to replace the 300,000-dwt VLCCs Isuzugawa and Fujikawa (both built 2004).
But the strategy of the two largest tanker owners is a little less clear as they do not appear to have enough tonnage on order to replace their older VLCCs.
NYK has six VLCCs built between 2000 and 2004, while MOL has five in the same age bracket.
Brokers suggest that because the Japanese operate their ships with an eye to sell at a relatively early age, maintenance is often not up to the standard it would be if the ships were to be operated past their third drydocking.
