With rates for VLCCs enjoying their greatest spike this decade last week – on the back of sanctions hitting Chinese tankers – the solid sentiment has manifested in the sale and purchase segment too.
Clarkson Research Services reports in its latest weekly report about crude tanker sales roaring back to life with the “stand-out” sale being that of the K Line VLCC Nagaragawa. The nine-year-old tanker has been bought by Japan’s Idemitsu for $48m, a strong price which Clarkson said reflects the current strong charter market.
The latest weekly report from Oslo-based Cleaves Securities, published yesterday, showed VLCCs surged 71% last week.
“The impact from US sanctions on Chinese owners, a persistent risk premium after the Saudi attacks and scrubber retrofitting are the short-term catalysts. However, do not forget the underlying fundamental trends we have been highlighting for years: The lowest orderbook since 1997, increasing US exports, and the implications from IMO2020 are now highly tangible,” Cleaves noted.