World News
TORM Adds Two More Fuel-Efficient MR Vessels: "We Believe That Asset Prices Are at a Cyclical Low"
A/S Dampskibsselskabet TORM (TORM) today announced it has signed an agreement to purchase two more fuel-efficient Medium Range (MR) resale vessels.
The two 50,000 dwt vessels are currently under construction at the Hyundai Mipo yard in Korea and will be delivered to TORM later this quarter, the company said.
The order follows the addition last week of four fuel-efficient Medium Range (MR) resale vessels from Guangzhou Shipyard International (GSI), including the option for four more.
"I am pleased that TORM’s strong capital structure allows us to act when we see attractive opportunities to grow the fleet. With these two MR resales delivering in Q3 2017, we have acquired a total of six new high- quality product tankers over the last few weeks," said Executive Director Jacob Meldgaard.
"We believe that asset prices are at a cyclical low and that our purchase prices are attractive. Therefore, the timing is right for growing and renewing our fleet."
While the number of newbuilds has fallen sharply over the last two years, a result of the ongoing tough market conditions, last week VesselsValue.com data indicated an uptick in 1H 2017 newbuild orders for tankers as well as bulkers.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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