As the price of very large crude carriers (VLCC) continues to climb, now, even 20-year-old aged VLCCs are no exception. It is reported that a 302,400 dwt vessel, “Yamatogawa”, delivered by Kawasaki Heavy Industries, was recently sold for $61.5 million, and the vessel is due for its next special survey in September this year.
This transaction follows a deal in April this year, when the similarly aged and sized vessel “Kasagisan”, built at Sumitomo Heavy Industries, was sold for slightly over $60 million. These two deals together indicate that second-hand prices for aged VLCCs are clearly strengthening.
According to another report earlier this month, Sincere Navigation sold its 2011-built 297,000 dwt VLCC (Maxim) for $82 million. In March this year, the company also sold a 2012-built sister vessel “Kondor” to Sinokor for approximately $78 million.
Considering the alliance between Sinokor and Mediterranean Shipping Company (MSC), the market outlook has become tighter—this alliance has achieved great success and also had a positive impact on the market. If 12 months ago, the value of a VLCC depended on its net price and the value of future earnings, today’s calculations also include a strategic premium. This is such that, once vessels under the “Sinokor-MSC” umbrella are excluded, the number of VLCCs available in the spot market is becoming a concern for some companies with large cargo programs.
