LR1s and aframaxes tipped for asset plays

Tankers led by LR1s and aframaxes offer the best opportunities for owners looking to make some asset plays, according to new analysis from online pricing portal, VesselsValue.

“Value investors still have plenty of opportunities to acquire prime aged assets at a significant discount to their expected future market value,” VesselsValue stated in a release.

Tankers offer the most promising investment overall, as most large crude tankers still have significant upside remaining based on VesselsValue’s analysis of expected market trends over the next several years.

On LR1s, VesselsValue argued that the large clean product tanker segment has seen a tough market environment over the past several years due to the large growth in vessel supply.

While admitting aframaxes have suffered from changes in trade patterns, VesselsValue pointed out that they remain the workhorses of the crude tanker fleet, and the average age of the fleet on the water remains high. “Rates should recover as older units come out of service, preserving the value of a five-year-old ship,” the analysts noted.

Two other picks made by the company were panamax boxships and handysize bulkers.

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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