Secondhand VLCC prices rally

Secondhand VLCC prices rally

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.

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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