February 5

Vintage VLCC prices edge down

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Tankers

Even though more than 10 rusty ladies have been reported sold this year, prices are finally coming down for vintage VLCCs.

Broking sources report that a raft of ships have been circulated, but buyers are reluctant to bid despite healthy earnings.

The latest reported sale in the sector is the 16-year-old Tohshi, a 300,500 dwt vessel built by Ishikawajima Harima Heavy Industries(IHI). It is noted to have been sold to China for a new low. The old tanker would most likely have fetched $10m more if sold a year ago when prices peaked after climbing for more than a year.

Comparable sales from the beginning of the year include a ship by Angelicoussis Group who sold a 306,000 dwt, Daewoo-built VLCC that hit the water in 2004. The price tag attached to the deal was just under $34m. A few weeks later, Fractal Shipping was noted selling a same-aged IHI-built ship, the 300,500 dwt Nereides, for $29m.

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