The value of modern medium-range product tankers has broken above $29m for the first time in two years.
Since the start of the year the value of five-year-old 45,000 dwt product tankers has risen $4m, according to weekly average price assessments reported by the Baltic Exchange, reaching $29.1m on Monday.
“The one sector which has remained positive is in MRs,” London broker Galbraith’s said in its weekly sale and purchase report.
“However, we may now be looking at a high point in [the] modern MR sector with spot rates having declined significantly and the period market quietening as we go into the usual [northern hemisphere] summer lull it is difficult to see prices increasing any further, particularly when the newbuild alternative remains attractive,” the report added.
Galbraith’s, along with a number of other brokers, referred to the sale of the Japanese-controlled 2004-built, 45,789 dwt Sakura Express, which was understood to have been sold for between $24m-$25m.
Although indicating a potential drop in modern MR values, it was still notably higher than the $20.4m paid for a similar Japanese vessel at the end of last year.
Clarksons values a five-year-old 47,000 dwt MR tanker at $30m, a 10-year-old 45,000 dwt vessel at $19m and a 15-year-old ship at just $11m.