Singapore-listed Yangzijiang Financial Holding has splashed over $30m to pick up stakes in two chemical and product tankers and entered into an agreement to co-charter eight eco MRs.
Yangzijiang Maritime Private Equity Fund, a sub-fund managed by Yangzijiang Financial’s subsidiary GEM Asset Management, has invested $19.5m in 26,200 dwt RT Star and $12.64m in 19,999 dwt OM Shanghai.
The company said the fund will co-own the vessels with Shanghai-based and Singapore-based tanker owners and operators, respectively.
The fund has so far closed a total of 12 deals, committed $178.8m and invested $82.8m.
“The demand for crude oil tankers is expected to increase by 6.5% in 2023, while demand for product tankers is expected to grow by 9.1%. The overall demand outlook for 2024 and 2025 is also positive, with total tanker deadweight tonnage demand projected to increase by 4.9%,” Yangzijiang Financial said explaining the move.
Meanwhile, the same fund has sealed a co-chartering deal for eight 49,999 dwt eco MR chemical and product tankers with an international tanker charterer for a period of less than a year for each vessel.
“This move is an optimistic bet on the future of the MR tanker market, which has consistently delivered good returns to owners since 2022,” the company said.
The plan is to secure time charters for the first time charter trip of the charter period, and hedge against weak summer months by entering into forward freight agreements to “protect earnings” and ensure the fund benefits from the expected improvement in MR tanker rates.
