NYK Line has sold a nine-year-old VLCC as tanker asset prices continue to weaken on low spot earnings, brokers said.
The Japanese shipping giant reportedly sold the 305,500-dwt Tokitsu Maru (built 2011) for $45m in the secondhand deal.
The sale price is in line with market expectations but reflects slumping tanker values.
VesselsValue estimates the Mitsubishi Heavy Industries-built, non-scrubber ship is worth $44.6m, while Maritime Strategies International puts its value at $52m for the third quarter.
The vessel's next special survey is due in April of next year, sources said.
“This sale price is not great, but not terrible either,” said a London-based broker.
Clients of Greece’s Dynacom Tankers Management have bought the vessel, Athens-based sources familiar with the deal told TradeWinds. Previously, brokers identified Qatar’s Aswan Trading & Contracting as a potential buyer.
Tokyo-listed NYK declined to comment on the transaction.
In July, TradeWinds reported Vanda Marine sold the 320,000-dwt Hra (renamed Eurospirit, built 2011) to Eurotankers for $48m, inclusive of future installations of scrubber technology and a ballast water treatment system.
Without that equipment, the vessel was expected to be worth about $46m.
Secondhand tanker prices have been falling since the second quarter, with limited shipping demand and diminishing floating storage requirement, according to analysts and brokers.
“The asset market is definitely weaker than six months ago, when the Japanese VLCC would have been sold [for] in excess of $50m,” said a shipbroker.
“Freight rates are much weaker now, and hence the price.”
Spot earnings in most crude and tanker segments have hovered close to their multi-year lows in recent weeks, with major producers keeping their exports low during the coronavirus pandemic.
Opec and their Russia-led allies are not expected to hike their output significantly before the destocking of oil in floating storage is completed. Oil analysts expect such rebalancing to take several quarters amid continued demand worries.
Many tanker players suggest secondhand prices could fall more due to weak earnings prospects, but it remains to be seen how large the correction will be.
“The downside is of course there. But I cannot tell when [a big drop] is going to happen,” said a broker.
“Old ships are still well priced overall. We have seen lower prices in previous years.”
Harry Papachristou contributed to the article.
