The prices of vintage Very Large Crude Carriers (VLCCs) are finally showing signs of a downward trend. "Despite more than 10 older vessels changing hands this year, buyers appear hesitant to engage in bidding, even amidst robust profit potential," said Hans Thaulow from Splash247.
According to reliable broking sources, a significant number of these aging vessels have been put up for sale, yet buyers seem cautious despite the promising earning prospects. The most recent transaction in this sector involves the sale of the 16-year-old Tohshi, a 300,500 deadweight tons (dwt) vessel manufactured by Ishikawajima Harima Heavy Industries (IHI). Notably, Tohshi has been acquired by a Chinese entity at a new low price. It is observed that, had the tanker been sold a year earlier, it could have commanded a price approximately $10 million higher, as prices reached their peak after a sustained year-long climb.
Among the comparable sales recorded since the beginning of the year is the Angelicoussis Group's transaction involving a 306,000 dwt VLCC constructed by Daewoo in 2004. This particular vessel was successfully sold for just under $34 million. Additionally, Fractal Shipping made headlines by selling a similarly aged IHI-built ship named Nereides, boasting a 300,500 dwt capacity, for a sum of $29 million a few weeks later.
The current market dynamics indicate a shift in the pricing trends for vintage VLCCs, with potential buyers exercising caution despite the vessels' historical earnings performance. This development prompts industry observers to closely monitor how these shifting market conditions will impact future transactions in the maritime sector.
