LR1s selling at knockdown prices

LR1s selling at knockdown prices

A host of LR1 tankers, less than 10 years of age, are filling this week’s broker reports.

Three ships that have been circulating for sales for months have finally found buyers. Taiwanese conglomerate Formosa Plastics has sold the 2009-built FPMC P Glory for a bit above $14m, significantly less than the $20.2m MSI’s fair market value sets on the ship. One broker commenting on the low price said Formosa had run out of patience, having had the ship on the market for too long. In mid-October the same outfit let go of two of its oldest long range tankers, the 70,400 dwt sized Formosa Falcon and FPMC P Alpine, for just $7m per ship, far less that the $11m Formosa Plastics had initially sought. The sales leave Formosa Plastics with three 2009-built LR1s.

Another player trimming down its exposure in the same sector is Mercator Navigation, which has let go of two 2008-built, 73,700 dwt ships, King Daniel and King Douglas, for $13.5m each, significantly less than the the MSI fair value price of $14.2m. The sales leave the Ernst Russ-backed company with only one LR1 tanker. Earlier this year the outfit let go of two other LR1 tankers, King Duncan and King Darius.

Hans Thaulow

Hans Henrik Thaulow is an Oslo-based journalist who has been covering the shipping industry for the last 15 years. As well as some work for the Informa Group, Hans was the China correspondent for TradeWinds. He also contributes to Maritime CEO magazine. Hans’ shipping background extends to working as a shipbroker trainee with Simpson, Spence & Young in Hong Kong.

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