Pan Ocean has sold two aging product tankers. The company is anticipated to receive six vessels starting in January next year, which is seen as a measure to streamline its fleet.
According to the shipping industry on the 1st, Pan Ocean recently sold two 46,000 DWT (Dead Weight Tonnage) medium-range tankers. The vessels, which are 19 and 18 years old, were reportedly sold for $11 million and $15 million, respectively. Once the sales are completed, Pan Ocean's tanker fleet will consist of 10 vessels.
The industry reports that Pan Ocean is selling vessels to streamline its fleet ahead of deliveries. The used tanker prices are on a downward trend, as the cargo volume of petrochemical products transported by tankers is decreasing while the capacity is increasing. The operational efficiency of aging vessels is declining due to environmental regulations from the International Maritime Organization (IMO).
According to Clarkson Research, the used price of a 5-year-old medium-range tanker is expected to be $41.9 million this year, a 9% decline compared to the previous year. Clarkson Research predicts that the used price of medium-range tankers will continue to fall, reaching $34.7 million by 2028.
This year, the global medium-range tanker fleet is expected to reach 714 million DWT, a 5% increase from the previous year. It is projected to show a downward trend only after reaching 752 million DWT in 2027. The profitability indicator for tankers, the freight rate, is also expected to decline. Clarkson Research estimates that the average freight rate for medium-range tankers will be $20,700 this year, a 31% decrease compared to the previous year. This level is expected to be maintained until 2028.
The Korea Ocean Business Corporation (KOBC) noted, "As the age of tankers increases, the price fluctuations become larger. It is expected that the used prices of product carriers will drop more significantly than those of crude oil carriers."