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Current vessel prices rising

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Overview of vessel prices

On a weekly basis, vessel prices indicate the currently trading prices of Very Large Crude Carriers (or VLCC), Suezmax, and Aframax, and their weekly changes. With weekly prices indicating short-term performance of the crude tanker industry, we will also look at the four-week average prices in order to smooth out and better understand the data. Depending on its size, a tanker takes two to three-plus years to build, with each tanker costing upward of ~$60 million.

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Current prices

VLCCs’ newbuild prices for the week ending January 6, 2015, stood at $106.04 million. This compares to $100 million the previous week and $101 million in first week of the prior month’s levels, according to data from Vessel Value Ltd. This level is close to its 52-week high of $106.17 million. The past four-week average saw current prices at $102 million, compared to $89 million in the same period last year.

Suezmax prices touched its 52-week high of $77.7 million in the week ending January 6, 2015, compared to $75.4 million in the prior week and $77 million in same week during the previous month. Plus, the four-week average stood at $76.05 million, compared to $58 million in the same period a year ago.

Aframax prices stood at $58.6 million, its 52-week high level, as of the week ending January 6, 2015. This compares to $56.55 million in the prior week and $55.8 million in the same week during the previous month. The four-week average was ~$57 million, compared to $47.1 million in the same period a month ago.

Impact on markets and companies

With current vessel prices recording weekly and year-over-year growth in all classes, the Guggenheim Shipping ETF (SEA) and tanker companies such as Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), Frontline Ltd. (FRO), and Nordic American Tanker (NAT) are likely to benefit.

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