Older supertanker prices top new builds on high freight rates

Investing.com - The value of older supertankers has exceeded new-build vessels for the first time on brokers' records, as shipowners rush to take advantage of high freight rates in the Gulf. In the past week, several ships built before 2016 were sold for $150 million or higher, compared with an average of $135 million for new builds, brokers said.

Record-high Middle East-to-Asia freight rates for very large crude carriers of $1.2 million a day are driving up ship prices. Prices for five- and 10-year vessels have soared, with deals signed in days rather than weeks as brokers race to secure the earliest available ships. Shipbroker Braemar said in a note to clients that prices are now determined by how quickly a vessel can be delivered to its new owner.

Ship ownership data shows that a recently built tanker owned by Greek billionaire George Prokopiou's Dynacom was sold with prompt delivery for $200 million, one of the highest prices ever recorded. Another vessel to be delivered in October fetched $169 million. Tanker values overall are up by a third compared with this time last year.

A major driver of demand has been the desire of Middle Eastern state-owned oil companies to own their own fleets, giving them greater control over exports out of the Gulf. Shipbrokers said that players in the market included Kuwait's national oil company and buyers looking for vessels to ship Iraqi crude. The United Arab Emirates' state energy group Adnoc has bought at least six supertankers over the past two months, according to maritime consultancy Drewry.

The Gulf countries are competing against South Korea's Sinokor, which currently dominates the tanker market, having bought around $6 billion worth of tonnage at the start of the year. Traders such as Trafigura, which announced the listing of a supertanker business in the past week, have also bought supertankers this year as they look for greater control over commodity movements and to protect their margins.

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