The VLCC market sees unprecedented second-hand price surges, surpassing new builds for the first time in 60 years amid rising demand.
A financial tide is sweeping through the supertanker market. According to Clarksons Research data, for the first time in the 60-year history of very large crude carriers (VLCCs), second-hand sale prices have reached record premium levels compared to newly built vessels.
Daily Earnings Exceed $200,000
Reference TD3C earnings have surpassed $200,000 per day for the first time since May 2020. One-year time charter rates have also exceeded the $130,000 level. Following the war between the United States, Israel, and Iran, it is expected that transactions in the market will move even further upward.
Broker Gibson attributes the currently extremely high VLCC freight rates to the following factors:
- Tightening of tonnage supply
- Increase in ton-mile demand
- Concentrated ship ownership
- Fragile geopolitical environment
Second-Hand VLCCs at Record Premium
According to Clarksons' report:
- Second-hand VLCC sale price: $168 million
- New build VLCC price: $128.5 million
- The difference: $39.5 million premium
Remarkable increases are also observed in mid-aged vessels:
- 10-year-old VLCCs: $110 million (22% increase since the beginning of the year)
- 15-year-old VLCCs: $80 million (29% increase this year)
This picture indicates that the second-hand market is experiencing its 'golden age.'
Orders Intensified
According to Clarksons' latest weekly report, new ship orders have also gained momentum. Approximately 50 VLCC orders have been placed to date.
Particularly with Sinokor's aggressive investments, S&P and new build VLCC asset investments have surpassed $10 billion this year, creating a record quarter for the sector. With one month left until the end of the quarter, Clarksons predicts that the first quarter of 2026 will be the highest investment quarter for the VLCC market to date.
This performance is expected to surpass the $14 billion investment wave seen in the LNG sector in the first quarter of 2022 and the $14 billion container ship boom in the third quarter of 2024.
“A Super Cycle Could Be Real”
Analysts at Splash Extra noted that last month was 'the best February in history' for VLCCs. The report stated that shipowners are increasingly believing that this super cycle could be permanent.
Alexander Saverys, CEO of tanker giant CMB.TECH, commented after the 4th quarter results that the tanker markets have gained strength beyond expectations due to changing trade routes, limited new deliveries, and active owner movements.
The U.S.-based investment bank Evercore ISI also published its latest tanker report under the headline: 'What a Great Time to Be Alive.'
The winds are blowing strong in the VLCC market; it seems that this time the compass points to second-hand ships.
Source: SeaNews Türkiye
