Hercules Tanker Management (“Hercules”) has announced the acquisition of five product and chemical tankers as part of its continued disciplined fleet expansion.
The transaction includes:
STI Madison (2014 LR2), STI Brooklyn (2015 MR2) and STI Black Hawk (2015 MR2) – acquired from Scorpio Tankers; and Nord Marvel (2020 MR2) and Nord Maverick (2020 MR2) – acquired from Norden.
The acquisitions represent a combined investment of approximately USD 225 million, with all vessels secured on long-term commercial charters, reinforcing Hercules’ strategy of pairing asset ownership with contracted earnings visibility.
A Disciplined and Timely Investment in a Strong Market
The acquisitions have been completed against the backdrop of a firm tanker asset market, with second-hand values continuing to trade at historically elevated levels due to strong freight markets, constrained fleet growth and limited shipyard availability.
Recent comparable transactions further support the strength of underlying values, with similar vessels transacting at levels of up to approximately 10 per cent above the pricing achieved by Hercules in its recent acquisitions, highlighting the attractive entry point secured for these assets. Against this backdrop, Hercules believes the pricing achieved in these acquisitions is well aligned with prevailing market conditions, particularly considering the vessels’ strong specifications and the benefit of long-term charter coverage.
Commercial Strategy: Contracted Cashflow and Operational Flexibility
All five vessels enter the Hercules fleet with long-term commercial employment already secured, consistent with the company’s strategy of combining:
- Asset-backed exposure to tanker markets, with
- Downside protection through contracted earnings, and
- Operational flexibility to serve the growing global cargo flows of its partners and affiliates
This approach reflects Hercules’ integrated model with Peninsula, enabling vessels to be employed efficiently across core supply chains while maintaining optionality to participate in wider freight markets.
Building a Modern, Future-Ready Fleet
The acquisitions form part of a broader and ongoing fleet development programme at Hercules. The company continues to progress its newbuilding programme with Jiangmen Hangtong Shipyard in China, where it has committed to a series of up to 10 ‘ultra-spec’ chemical tankers, designed with flexibility to supply conventional fuels, biofuels and methanol, alongside enhanced efficiency and emissions performance. In parallel, Hercules is also investing in next-generation energy infrastructure through the construction of an 18,000 cbm LNG bunkering vessel at Hyundai Mipo, scheduled for delivery in 2027.
Market benchmarks indicate vessels of this type are currently contracting at approximately USD 90–95 million per unit, underlining the strategic and capital commitment behind this segment.
John A. Bassadone, Founder and CEO of Hercules Tanker Management, said: “This is another step in building Hercules carefully and deliberately. We are not trying to grow for growth’s sake. Our focus is on acquiring the right assets, at the right time, with the right commercial backing.
“These vessels come with strong employment already in place, which provides stability, while still allowing us to participate in a market we believe has solid fundamentals over the medium term. We are fortunate to be in a position where global cargo flows can underpin our investments, and we remain mindful that discipline is critical in this cycle.
“Additionally, we are currently engaged in negotiations for newbuilds of all sizes including LR2s, MRs, and Handys, as well as additional ultra spec vessels.”
