A 20-year Indian-flagged very large crude carrier (VLCC) has reportedly been sold for $60.5 million, marking a sharp increase in the value of vintage tankers amid tensions in the Strait of Hormuz, which have impacted global energy flows.
This is the 2006-built Kasagisan (IMO: 9324100) with a capacity of 302,000 dwt, owned by Japanese shipping giant Mitsui OSK Lines (MOL).
Measuring 333m long and capable of sailing at a maximum speed of 16.5 knots, the Indian-flagged vessel's value has been estimated to be $57.8 million, as per a Tradewinds report, citing data from VesselsValue.
It added that the VLCC had been sold internally to the Indian subsidiary of the MOL, Sakura Energy Transport, back in 2021.
However, the buyer of the Kasagisan has not yet been identified, sparking a great deal of interest in a possible shift in South Korean tanker operating giant Sinokor Merchant Marine's dominance over this market.
Notably, the sale of the Indian-flagged VLCC also comes after the 2006-built Seasilk, which has a capacity of 318,000 dwt, reportedly sold last month at $57 million—to Sinokor again, which has been lapping up all available tonnage at a fearsome pace.
Another reason why this transaction is a huge deal, is because it has taken place in a second-hand vessel market marked by a decline in the number of ships available—which, in turn, has spiked the value of each available one.
This is because uncertainties along prime shipping routes like the Strait of Hormuz—which once saw about 20 per cent of the world's energy flows pass through—have led to an increase in freight rates due to higher maritime risk insurance and longer routes taken to avoid trouble.
Vintage VLCCs are also often used as shadow fleet vessels, the number of which often spike during times of war to help countries like Iran and Russia circumvent sanctions.
In fact, at least 34 tankers linked to Iran had managed to bypass the US naval blockade in the Strait of Hormuz, of which at least six were found to be carrying crude oil from Tehran, a Financial Times report said earlier this week, citing Vortexa data.
19 of the 34 Iran-linked tankers had reportedly passed through the US blockade to exit the Gulf, while 15 entered the Persian Gulf from the Arabian Sea, heading for Tehran.
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