Tanker S&P deals down by nearly 50%

Tanker S&P deals down by nearly 50%

The sluggish tanker charter market and declining asset values have seen S&P deals in the sector slide this year, according to data compiled by brokers Alibra Shipping.

“S&P transactions for tankers have almost halved so far this year (Jan 1-Sept 2),” the broking house noted in a recent report.

This year, Alibra has tracked 191 tankers changing hands, compared to 303 at this point last year. Some 15 VLCCs have been sold this year, compared to 42 during the 2015 period. This year, four VLCCs have been sold as resales compared to 20 this time last year.

“The tragedy of the S&P market really snaps into focus,” Alibra noted, “when we look at the average price at which resale VLCCs were sold: during the 2015 period, it was $98.9m per vessel. This year to date, the figure is just $84.25m.”

At the other end, the average price at which a 15-year-old VLCC changed hands during the 2015 period was $32.23m – not too much above $31.47m, the average price at which 15-year-old VLCCs have been sold this year.

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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