Sinokor’s stunning raid in the tanker sale and purchase markets over the past six weeks is on course to make the Korean shipowner the largest operator of VLCCs in the world.
Brokers are agog at Sinokor’s market-altering decision to largely exit the container scene, selling most of its boxships to Mediterranean Shipping Co (MSC), in favour of supertankers, paying over the odds for available VLCC tonnage, having secured more than 30 VLCCs in the past month and aiming to bag another 20 or so.
Broker Gibson noted that most market players had been pegging 15-year-old VLCCs at around $59m to $60m during December, but Sinokor, keen to corner the market, has been paying 10-15% above these levels to commit sellers and lock down tonnage, in addition to a reported slew of time-charter extensions and new fixtures to major owners.
Sinokor has concluded tanker deals with Frontline, CMB.TECH, Zodiac, Capital, TMS, International Seaways, Delta, Kyklades, Advantage and Chandris, according to multiple broking sources, with the VLCCs being bought on an as is, where is basis without inspections.
However, a deal for eight to 13 units from Dynacom is said to have failed on seller’s subjects.
“Sinokor’s purchases have mostly been in the 2010- 2016 built timeframe, indicating a conscious choice of the vessels that still have a good trading life and are technically and regulatory compliant,” Allied Shipbroking pointed out.
Sinokor has also been busy in the charter market, fixing or extending ships for periods of one to three years’ time charter, taking its chartered-in VLCC fleet to above 40 units.
Calculations by broker Hartland suggest that Sinokor is now operating a VLCC fleet of close to 100 ships, giving it an 11% market share of tanker’s biggest vessels, and somewhere between 15% and 20% of the compliant, non-sanctioned fleet.
“This is hardly cornering a market but, nonetheless, it is punchy and it is a big vote of confidence in the largest tanker segment and one that carries obvious market-timing risks, both upside and downside,” Hartland stated in its latest weekly report.
“If all above deals conclude, Sinokor is set to emerge as the largest owner of VLCC tonnage globally,” Greece’s Lion Shipbrokers noted.
Meanwhile, rumours abound of a VLCC tie-up between Sinokor and Trafigura, with the latter having two on the water and 10 on order. Trafigura is also understood to have moved recently for two 2021-built 300,000 dwt VLCCs, Hunter and Serendipity, paying Evalend $125m for each ship.
