Lloyd’s List: Listed Companies to Push Rise in Newbuilding and Secondhand Sales

“New York tanker broker and consultancy Poten & Partners has also highlighted the recent role of listed companies in the US in hiking the value of secondhand and newbuilding tanker values and establishing price floors. Tanker values have risen by 10%-15% over the last six weeks, as companies including Scorpio Tankers, General Maritime and Crude Carriers bought modern and newbuilding wet tonnage.Prices paid have reportedly been as high as 116m for a resale very large crude carrier, up from $98m six months ago. Resales as well as modern tonnage have been funded largely through follow-on offerings, rather than initial public offerings, said Poten’s Weekly Tanker Opinion. ‘As asset prices edge somewhat higher, pressures on freight rates are likely to follow. Interest and obligations of public companies to constantly demonstrate growth will likely fuel more sale and purchase activity in the near term. The asset and equity markets are both driven by momentum and nothing attracts a crowd like a crowd!’”