Middle EastTankers

Bahri splurges $224m on pair of modern VLCCs

The sale of a quartet of VLCC sister ships over the past five months neatly illustrates rising tanker values.

Elandra Tankers, a joint venture between Vitol and Standard Chartered, took delivery of a quartet of 300,000 dwt VLCCs from Hyundai Heavy Industries in South Korea in 2020, having paid $92m per ship order in 2018.

In July this year, the Singapore joint venture sold one of these two-year-old tankers, the Elandra Kilimanjaro, to Tsakos for $95m. Last month it sold the Elandra Everest to Middle East interests for $107.8m, and now the company has made headlines in many broking reports, selling the Elandra Denali and Elandra Elbrus to Saudi Arabia’s Bahri for $112m each, prices not seen for more than a decade.

Secondhand tanker prices have soared this year. The Baltic Exchange last Friday raised its price indications for five-year-old VLCCs to $96.6m. Secondhand VLCC prices have leapt by 26.6% so far this year, with freight rates also becoming extremely firm.

“VLCC supply continues to be tight, on high activity levels in the Middle East and US Gulf markets in recent months, pointing to continued high rates in the near-term,” a recent report from Jefferies noted.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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