Rusty old oil tankers are fetching big bucks thanks to Russia, says The Wall Street Journal, as they end up in Russia’s so-called shadow fleet. Publicly listed shipping companies have been able to sell their old and soon-to-be-scrapped vessels at high prices as demand remains high from those who are eager to participate in the Russian oil trade.
The buyers are often unlisted Greek and Chinese shipping companies who are looking to cash in on the upheaval that is sending more tankers on longer journeys that generate higher returns.
Growing global oil demand and slim new vessel orders since 2015 are helping to prop up the value of ancient ships, says Stifel analyst Benjamin Nolan.
Owners of newer ships are also doing well, with companies including Euronav, Frontline, Hafnia and Mitsui O.S.K. getting high prices for old ships while benefiting from strong tanker rates.
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