Tradewinds: Poten Ponders VL Moves

“Overseas Shipholding Group (OSG)’s decision to call in a commercial manager has created a wildcard in the VLCC market just as investors are showing an interest, Poten & Partners says. “Bankrupt OSG called in V.Ships to take commercial responsibility for its 10 VLCCs and other crude tankers last week in an effort to simplify operations. “A significant wildcard in the VLCC sector, as well as the dirty tanker market overall, is the recent decision by OSG to effectively exit the commercial management of its vessels,” Poten said in its weekly report. “Poten added: “It’s difficult to say if these tankers will be available for sale while the company is still in bankruptcy. “If they are put up for sale it would appear that there would be interest from ship owners, most likely with private equity backing. “As Genmar’s exit from bankruptcy has shown, OSG could be well positioned for private equity backing itself.” Bold with a billion Genmar missed out on Maersk Tankers’ VLCC fleet after Euronav swooped at the eleventh hour to complete a $980m takeover coup. “The acquisition of the Maersk fleet by Euronav is a considerably bold move by the publically traded company,” Poten said.“VLCC spot rates have staged a comeback in mid-January following softer rates immediately after the holiday season. With a larger market share, Euronav will be better positioned to take advantage of rate volatility that seems to be returning to the markets.”