Market Sentiment Shifts: Used Oil Supertankers Cost More Than New Vessels for First Time
Used oil supertankers have become more expensive than new vessels for the first time on record as shipowners rush to capitalize on high freight rates in the Persian Gulf, according to a report by the Financial Times on September 28.
Prices for 5- and 10-year-old tankers have surged, with deals being completed within days rather than weeks as brokers rush to secure the earliest available vessels. This shift in market sentiment has been driven by record freight rates on the Middle East-to-Asia route for so-called very large crude carriers, or VLCCs, supertankers capable of carrying about 2 million barrels of oil. Rates have reached $1.2 million per day.
Shipowners Capitalize on High Freight Rates
One shipbroker specializing in supertanker transactions described the market as “crazy.” He added that over the past week, several vessels built before 2016 had sold for $150 million or more, while the average price of a new vessel stands at $135 million. This surge in demand has led to a significant increase in prices, with some vessels selling for record-breaking sums.
“In 50 years, we will look back at 2026. This is truly a unique situation. I don’t think I’ll see a market like this again in my lifetime. This is a once-in-a-generation event,” said Alexander Saverys, CEO of Belgian shipping company CMB.TECH, which operates several vessels on Middle East routes.
Age No Longer Matters
In a note to clients, shipbroker Braemar said prices are now being determined by how quickly a vessel can be delivered to its new owner. “Today, the age of a vessel has almost no impact on its price,” the note said. This shift in market dynamics has led to a significant increase in demand for older vessels, which are now selling for record-breaking sums.
Record-Breaking Sales
Ship ownership data show that a recently built tanker owned by Greek billionaire George Prokopiou’s Dynacom was sold for $200 million with “prompt delivery,” one of the highest prices ever recorded in the market. Another vessel scheduled for delivery in October sold for $169 million. Overall, tanker prices have risen by a third compared with the same period last year.
The surge in demand and prices has been driven by record freight rates on the Middle East-to-Asia route, which has led to a significant increase in demand for supertankers capable of carrying large volumes of oil. As shipowners rush to capitalize on these high freight rates, the market has become increasingly competitive, leading to a surge in prices and a shift in market sentiment.
Original Article: ‘Market has gone crazy’: Used oil supertankers cost more than new vessels for first time — Nv