Valles orders as prices fall

Hong Kong and Vancouver-based Valles Steamship Co is said to be paying a new low of $36m for an aframax newbuilding in Japan, as prices begin to crumble at shipyards.

Industry sources say the owner will shortly extend its orderbook at Tsuneishi Shipbuilding in Japan, with a new contract for at least one vessel, plus a possible option on a second ship. Valles already has two 106,300-dwt ships on order at Tsuneishi.

Although there has been little active ordering of aframax tonnage recently, prices have come off from the $40-41m levels seen last year. In October aframax newbuilding resales exchanged hands for around $39.5m apiece. Brokers reports quote current price levels at around $37m, and suggest the trend is towards weaker levels.

Valles is one of the few owners who has actively been extending its orderbook recently. The owner has now built up a fleet of seven newbuildings, with deliveries scheduled to start from September 2002. Aside from the three vessels at Tsuneishi, Valles already had three 107,000-dwt tankers on order at Imabari Zosen in Japan.

Last month the company moved to take advantage of an earlier delivery slot that had become available and signed a letter of intent for one aframax tanker for delivery in 2003, with an option on a vessel for 2004 handover.

The company is understood to have secured time-charter deals for five of its tanker newbuildings, fixing two to oil major ExxonMobil, one to Italian oil company Agip, another to Japanese interests, and fixing the fifth privately.

Valles managing director John Koo has previously indicated to TradeWinds that his company is also taking a close look at designs for a wide-bodied, shallow draft aframax tanker.

Tradewinds 12 Dec 2001
Lucy Hine in London