The Number Of Existing Oil Tankers Changing Hands Soars

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Credit: Venti Views/Unsplash

Zhoushan, China-based ship owner Zhejiang Guanghui Marine Shipping Co., Ltd. recently sold a 9-year-old 7,000 DWT product oil tanker to an anonymous buyer from Singapore for US$7.19 million, far higher than the market valuation in the mid-2022, a successful deal made possible with the one-stop maritime eCommerce platform – Marine Online. Sources have said that the company plans to sell an additional seven of its 7,000 DWT product oil tankers in the near future, reports CISION.

Used vessels

In the first nine months of 2022, the number of used vessels changing hands grew exceptionally. According to publicly available data, almost 1,000 vessels found a buyer during the period, including 525 oil tankers. The trading volume of oil tankers grew nearly 40% in the third quarter when compared to the first three months.

The oil tanker market witnessed an exceptional spurt in growth during the second quarter, largely due to the ongoing conflict between Russia and Ukraine. Data from shipping and trade data and intelligence provider Clarksons Research shows that the average lightweight tanker earnings rose to a record single-month high of US$49,685/day in June 2022.

In addition, the number of existing tankers with new owners increased by 40% in the month with the transaction price reaching a 10-year high. Vessel brokerage firm Intermodal highlighted in its latest weekly report that the variety of vessels changing hands during this year’s first three quarters of 2022 also expanded to include 1,050-1,100 oil tankers and bulk carriers, totaling almost 85 million DWTs.

Nearly 525 oil tankers and 550 bulk carriers found new owners during the first nine months of the year. When compared with the first quarter, the trading volume of oil tankers in the third quarter increased significantly by some 40%, while that of bulk carriers decreased by almost 30%.

Oil tanker

Intermodal broker Mohamed Rabie indicated that the fluctuation in the types of vessels seeking new owners reflected the increased interest among owners in acquiring oil tankers. The ongoing global energy crisis, energy shortages in the European market and the upcoming EU ban on imports of Russian crude oil are leading to the average length of an oil tanker’s voyage jumping rather significantly.

Some oil tanker companies said that with the soaring freight rates to transport the fuel, the price of used tankers has risen sharply over the recent six months. In terms of percentage, the growth was the highest seen over the last decade. Since the end of March, the benchmark price of a 47,000 DWT MR ship built 15 years ago has increased by almost 70%. The rising price of second hand oil tankers is supported by the strong tanker shipping market, which is driven by the higher needs for vessels due to the RussiaUkraine conflict.

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Source: CISION

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