Several vintage suezmax tankers have been reported sold at strong prices amid growing optimism in the asset market.
Brokers reported Sovcomflot sold the 159,000-dwt SCF Ural and SCF Caucasus (both built 2002) to Edge Maritime for $16m each.
The Russian state carrier appears to have benefited from the recent upturn in secondhand prices, with consultancy Maritime Strategies International estimating the combined value of the ships to have risen by $2.6m in the past three months.
Edge Maritime, a new player based in Greece, has been soaking up aged suezmax tankers in recent quarters.
The company bought two of Sovcomflot’s oldest tankers, the 159,200-dwt SCF Altai (renamed Aurora Borealis, built 2001) and SCF Khibiny (renamed Mercury I, built 2002).
Separately, India’s AZA Shipping was reported to have sold the 151,000-dwt Mogra (built 2000) for $16m.
Surprising sum
The price has caught some by surprise as the Japanese-built ship is older and smaller than the Sovcomflot vessels, which are believed to be well maintained.
“Paying $16m for a ship built in 2020 … This is huge,” said a London-based broker. “It is very intriguing.”
VesselsValue estimates the ship is worth about $13.2m and lists Hong Kong-based Global Engineering and Trading, a little known company, as the new owner which has renamed it Tulip.
Sovcomflot declined to comment. Edge Maritime and AZA Shipping did not respond to requests for comments. Global Engineering and Trading could not be reached.
Despite weak spot earnings, experts said the market mood for secondhand tankers has turned bullish on forecast demand recovery and high premiums in risky trades.
“Secondhand activity and prices have climbed higher in recent weeks,” Drewry lead tanker analyst Rajesh Verma said.
“Optimism about the rebound in trade after the pandemic seems to be the main driver."
But Verma warned of ”still high uncertainty” over the pace of oil demand recovery amid renewed Covid-19 outbreaks.
“Any significant recovery in tonnage utilisation in the crude tanker market will require a massive tonnage scrapping as the demand outlook is not bright,” he said. “After the recent surge, the upside potential of the prices is limited.
“Moreover, as most of the future growth in crude trade will come from the long-haul east-bound trade, VLCCs continue to be a better option [for ship buyers].”
