VLCCs back in vogue?

Aug 09 2013


Seven VLCCs have appeared on brokers’ newbuilding lists, marking their first appearance for several months.

In addition, four modern units were thought to have changed hands and one was reported as sold for demolition.

China Merchants has reportedly ordered four VLCCs for $85 mill each – two at Jiangnan and two at Dalian - while a UAE tanker concern has ordered three VLCCs at recently formed Japan Marine United (JMU) for $93 mill each, according to brokers’ reports.  

As for the sales, two modern Gulf Navigation VLCCs were reported sold to undisclosed interests for $90 mill en bloc.

The vessels were the 2006-built ‘Gulf Eyadah’ and the 2007-built ‘Gulf Sheba’.

A Chinese concern was said to have sold the 2010-built VLCCs ‘Grand China’ and the 2011-built ‘Peace China’ to Greek interests for $109 mill en bloc.

Sold for recycling was the 1996-built ‘Seagull’, purchased by Indian breakers for $428 per ldt.

In another sale reported, D’Amico’s recently delivered Suezmax ‘Mare Venetum’ was believed sold to undisclosed interests for $51 mill. She was delivered in April this year.

The 2003-built MR ‘Tapatio’ was said to have been sold to Norwegian interests for $19.9 mill. The sale was thought to include a five-year bareboat charter at $7,500 per day.

Marubeni Corp’s 2007-built MRs ‘Challenge Paradise’ and ‘Challenge Pioneer’ were also thought sold to a US-based fund for $20 mill each.

Navios Maritime Acquisition Corp has confirmed the chartering out of four newbuilding MR2s.

One newbuilding MR2 has been chartered out for four years at a base rate of $15,356 (net) per day, plus 100% profit based on an index, with a ceiling of $20,475 (net) per day. Charter base and ceiling rates will increase by 2% per annum.

This vessel, to be delivered in 3Q13, is expected to generate around $3.2 mill annual base EBITDA for the first year ($13.5 mill of aggregate base EBITDA including the annual 2% increase over the duration of the charter), assuming her opex approximates the current operating costs and 360 revenue days per year.

Three newbuilding MR2s have been chartered out for two years at a base rate of $14,319 (net) per day, plus 50% profit sharing.

Each vessel is expected to generate about $2.8 mill of annual base EBITDA ($5.7 mill of aggregate base EBITDA), assuming their opex approximates the current operating costs and 360 revenue days per year.

Navios Acquisition said that it expected these vessels will be delivering in Q1, Q3 and Q4 of 2014.

Also in the charter market, the 2000 – built MR ‘Ravnanger’ was believed fixed to Koch for 12 months for $13,250 per day with an option for a further 12 months attached.

Apart from the VLCC mentioned above, three more large crude carriers were reported to be leaving the fleet.

These included the 1992-built Aframax ‘Eagle Centaurus’ sold on private terms to Pakistan breakers and the VLCC FSOs ‘National’ (built 1993) and ‘Titan Ruchira’ (built 1991) both also sold to Pakistan on private terms.

In addition, China Shipping was said to have disposed of the 1992-built Panamax ‘Da Qing 92’ to unknown recyclers.

 

 

 

 

 

 



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