Secondhand VLCC prices leap
Frontline reported to have paid $210m for two 2009-built vessels.
Frontline"s purchase of two very large crude carriers for a rumoured price of $105m each showed a 10% rise in tanker secondhand prices last week.
The John Fredriksen-led company confirmed it had bought two ?high specification? 2009-built, 321,300 dwt VLCCs on Monday afternoon, without disclosing the price.
Frontline"s announcement followed broker reports that it had spent $210m on the two VLCCs and was also in negotiations for a newbuilding resale, at around $110m.
Before the announcement, Frontline chief executive Jens Martin Jensen told Lloyd"s List that he could not rule out the possibility that it was in negotiations to purchase three vessels.
Greece"s Gulf Marine Management sold the 2009-built, 321,300 dwt Andromeda Glory and Callisto Glory to Frontline at around $105m each, according to London brokers. In addition, Frontline was reportedly negotiating to buy the 319,300 dwt Atlantic Glory , also from Gulf Marine Management, due for delivery in May from South Korea"s Daewoo Shipbuilding.
?It is a powerful illustration of the positive sentiment in the market at the moment that when these vessels were placed on the market about one month ago with a price tag of around $104m most felt that they were very unlikely to be sold,? London broker Galbraith"s said.
?There can be no doubt that we are now definitely in a rising market.?
ICAP Shipping agreed: ?This is over a 10% increase on the Universal resales sold in January,? referring to two Cido-owned 298,300 dwt tankers that were sold for $96.5m.
Clarksons increased its VLCC resale guide price to $105m on Friday, up from $98m at the end of 2009.
It was also not the only sector to see a healthy lift in values. Prices for resale aframaxes were boosted when Turkey"s Geden Lines sold a 115,873 dwt tanker under construction at Samsung Heavy for $60m to Stealth Marine, one of eight aframaxes it has on order at the South Korean yard. The Stealth Marine deal includes an attached five-year bareboat charter to Geden at $12,900 per day.
Clarksons, which reported the sale, raised its resale price for a smaller 105,000 dwt aframax tanker to $56m, compared to $53m at the start of the year.
These were just three of 20 reported and rumoured tanker sales last week, with a surge in deals and interest coming at the same time as tanker analysts upgraded owners" earnings forecasts for 2010.
Two older aframax crude oil tankers were sold last week with a $7m price gap, representing the difference in value for double-hulled tankers.
An Ofer Brothers-owned vessel, the 1993-built, 97,046 dwt double-hull Baltic Sea , was reported sold for $12.5m to Singapore buyers.
In contrast, Singapore-based Ammships sold its 1991-built, 95,843 dwt single-hull Coastal Venus for $5.2m.
Also in the crude sector, details of two vessels bought by Greece"s Navios Maritime Acquisition emerged when Gibson reported the 2007-built, 74,896 dwt Colin Jacob and Ariadne Jacob had been sold by German owner Ernst Jacob for $43.5m each.
It comes two weeks after Navios announced that it planned to spend $458m on buying product and chemical tankers. London-based Gibson added: ?It appears Navios have struck a deal with Remi Maritime for their nine-ship orderbook from Dae Sun Shipbuilding and Engineering in South Korea. We understand a number of the later deliveries will be changed from 25,000 dwt IMO II chemical tankers to MR2s with delivery in end 2011-2012.?
In the chemical tanker sector, the Japanese-controlled 2003-built, 6,545 dwt Southern York was sold for $10.5m to China"s Sinochem.
The 1991-built, 8,789 dwt OSM Encore was reported sold to Korean buyers for $3.2m and the 1991-built, 16,924 Bunga Siantan was bought for $3m by unknown interests.