COSCO sells vintage VLCC for steep discount

COSCO has sold the Japanese-built, scrubber-fitted VLCC Cosgrand Lake (299,000 dwt, built 2006) at a steep discount, brokers say.

Market sources report the 19-year-old tanker has been committed to undisclosed interests at $35m, well below the $40.67m valuation assigned by pricing platform VesselsValue.

Broker sources tie GMS to the deal. The company’s last VLCC purchase was in June, when it added the 300,000 dwt Lila Kochi (built 2008) from Mitsui OSK Lines, where it traded as the M Star, for $48m. If confirmed, the new addition will double Lila Global’s exposure in the segment.

“Cheap but expected,” a broker source commented, noting that COSCO’s strict KYC checks severely limit the pool of eligible buyers.

The last comparable VLCC transaction came in September, when the one-year older Korean-built Dalma (307,000 dwt, built 2007) changed hands for $48m.

GMS’s shipowning arm, Lila Global, has an established history of trading with COSCO, having previously flipped two COSCO-controlled VLCCs a few years ago.

Since May, Lila Global has been on an aggressive buying streak in the tanker segment, acquiring two MR2 product tankers from International Seaways, a Mitsui-built VLCC, a suezmax, and a stainless-steel chemical tanker.

Sharing is caring!