Mitsui OSK Lines to Sell Older Tankers Amid Surging Vessel Prices
Japan's Mitsui OSK Lines is planning to sell some of its older oil tankers as vessel prices surge due to disruptions in shipping capacity. Chair Takeshi Hashimoto said that the company will sell one to two ships per year, citing 'quite attractive' prices for the vessels.
The strategy comes after pressure from activist investor Elliott Investment Management, which urged MOL to sell some of its vessels to improve capital efficiency as fleet values rose. The wars in the Middle East and Ukraine have disrupted normal trade routes, forcing oil producers to use complex workarounds and tightening shipping capacity.
Freight rates are surging as a result, with a 5-year-old very large crude carrier selling for about $151 million, more than a newly built one that costs $130 million. A 20-year-old tanker can go for around $71 million, a 90% increase from last year.
MOL operates a fleet of over 900 vessels overall, including bulk carriers and containerships. The company is taking advantage of the opportunity to sell its older tankers at attractive prices, with Hashimoto saying 'we should not miss this opportunity.'