MR2 tankers lead secondhand sales
Secondhand Tanker Sales Surge Amid Price Pressures
This week has witnessed a notable increase in secondhand tanker sales, particularly within the MR2 segment, which is drawing significant interest from buyers. Although charter rates have remained steady, supporting asset values longer than anticipated, multiple brokerages are now cautioning that prices—especially for modern eco-design vessels—are nearing a tipping point.
Key Transactions Highlight Market Trends
Among the prominent transactions, Danish shipping company Norden has sold two eco-friendly MR tankers, the Nord Joy and Nord Jewel, each for $37 million. These 50,000 dwt vessels were constructed in 2018 at Japan Marine United’s Maizuru Shipyard and have proven attractive to the market despite a general decline in sentiment. This sale price aligns closely with a similar deal in April, where the 2018-built PS Atene, a Hyundai Mipo construction, was sold for $37.3 million. However, brokers are beginning to express concerns that this could be the high point for prices, as the values of eco-design assets start to experience downward pressure.
One brokerage representative remarked to Splash that “we have seen prices falling across the board, especially for modern eco tonnage. The supply outweighs demand, and that is also reflected in owners’ willingness to test their breakeven levels with spot and forward deliveries.” This indicates a shifting dynamic in the market, where the balance of supply and demand is becoming increasingly precarious.
Additionally, vintage MR2 units are also facing declining values, albeit at a slower rate. Japanese shipping giant Nippon Yusen Kaisha (NYK) has sold the World Navigator, a 14-year-old, zinc-coated, 47,000 dwt MR tanker constructed at Hyundai Mipo, for about $17 million. The buyer, believed to be of Greek origin, has reportedly finalized the deal pending necessary surveys. This transaction underscores the gradual decline in vintage tanker values, following a similar sale of a sister ship for $18 million just last month.
Market Outlook and Implications
The noticeable divergence in pricing between eco and non-eco tonnage reflects a shifting landscape in the secondhand tanker market. With an increase in the availability of vessels and a cautious approach from buyers amidst broader macroeconomic uncertainties, brokers anticipate an adjustment phase across all tanker classes. While MR2 vessels currently represent the most liquid segment of the market, the sustainability of this pricing resilience, particularly for eco-design ships, remains a critical focal point for stakeholders in the industry.
As market dynamics continue to evolve, participants will need to keep a close watch on these trends to navigate the complexities of the tanker sales landscape effectively.
