Cash buyers in the ship recycling sector are well aware of the fortunes to be made by extending the trading lives of vintage tankers in today’s extreme markets brought about by Russia’s invasion of Ukraine, says an article published on splash.
Doubled its fleet size
Lila Global, the shipowning arm of cash buyer GMS, has more than doubled its fleet size over the past 12 months.
Another cash buyer, Wirana Shipping, has also got into shipowning in recent weeks. The company has paid $55m to take on the 15-year-old, 297,400 dwt Nave Photon VLCC from Navios Maritime Partners as well as shelling out $52m for the 18-year-old, 281,396 dwt Asia Dawn VLCC from Hong Kong’s Nan Fung Shipping with plans to add more tankers in the coming months. The Asia Dawn has since been renamed Ocean Kapal.
Sanctions trading environment
Prices for vintage tankers have hit historic highs as well as sales volumes in recent months as Russia moves into a sanctions trading environment.
Clarkson Research’s secondhand tanker price index has recorded its sharpest ever upwards movement over the last year, rising by 52% to the highest level since 2008.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!