Supertanker Rally Lures Investors as War Squeezes Vessel Supply
- VLCC hiring costs on Middle East–Asia routes exceeded $1.2 million per day as the Iran war disrupted shipping and reduced available tankers.
- Middle East–China VLCC rates more than doubled since late August, according to Braemar.
- Xclusiv Shipbrokers reported that the Baltic VLCC TC Average reached about $722,946 per day on September 18, up 807.1% from the same period a year earlier.
- The value of 15-year-old VLCCs rose nearly 61% between July 10 and September 18, according to Xclusiv Shipbrokers.
35 Articles
35 Articles
VLCC Freight Rates Surge More Than 800% Amid Hormuz Tensions, Used Tanker Values Rise Up to 62%
ATHENS - The market for very large crude carriers (VLCCs) has entered one of its strongest periods of price appreciation in recent years, as the explosive rise in freight rates is now feeding directly into the value of secondhand vessels. According to an analysis by Xclusiv Shipbrokers, the acceleration has been particularly pronounced since late July, with geopolitical tensions surrounding Iran and the Strait of Hormuz, reduced effective vesse…
The global market for oil tankers is experiencing a historic and unprecedented phenomenon. Due to astronomically high freight prices, the value of older supertankers has risen so sharply that, for the first time, they fetch more than brand-new vessels. In an overheated market, everything revolves around one thing: how fast can a ship take to the sea?
The VLCC market has seen one of the strongest appreciations in recent years, as the explosive rise in freight rates is now being passed directly onto the prices of used ships. According to an analysis by Xclusiv Shipbrokers, the acceleration has been particularly strong since the end of July, with geopolitical turmoil around Iran and the Strait of Hormuz, reduced actual ship availability and high revenues creating a particularly strong environme…
The cost of used supertankers has surpassed the price of new ones for the first time
According to the Financial Times, this shift is driven by record-high freight rates in the Middle East, with the daily charter rate for oil tankers capable of carrying at least 2 million barrels reaching $1.2 million. Fueled by this surge in demand...
The prices of used oil tankers jumped to higher levels than the new ones for the first time, with freight from the Middle East to Asia reaching $1.2 million a day and buyers raced on ready-made ships.
Supertanker Rally Lures Investors as War Squeezes Vessel Supply
A supercharged rally in tanker earnings is attracting new investors to the global shipping industry, as the war in Iran points to how geopolitical crises can drastically curtail the supply of vessels.
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