Prices for used very large crude carriers have surpassed those of newbuilds for the first time, as the cost of shipping a tanker from the Middle East to Asia reaches a record of about $1.2 million a day, amid rising demand for vessels ready for immediate deployment.
Prompt delivery drives up tanker prices
Prices for tankers aged between 5 and 10 years have risen sharply. Very large crude carriers can carry about 2 million barrels of oil, increasing their importance on major export routes.
Several tankers built before 2016 were sold last week for $150 million or more, compared with an average of about $135 million for a new tanker, as buyers showed a willingness to pay more for vessels that can be put into service quickly.
The value of oil tankers overall has risen by about one-third from the same period last year. Ship-ownership data showed a modern tanker sold for $200 million with the possibility of prompt delivery, in one of the highest deals recorded in the market.
Oil companies expand fleet ownership
The rise in demand has coincided with national oil companies in the Middle East moving to own their own tankers, giving them greater control over their exports and reducing their reliance on chartered vessels, particularly amid risks surrounding the Strait of Hormuz.
The UAE's ADNOC Group bought at least 6 very large crude carriers over the past two months, according to maritime consultancy Drewry, while brokers said buyers were seeking vessels to transport Iraqi oil.
Tight supply supports prices
Record freight rates have strengthened the economic case for buying vessels, while some owners' decision to retain their tankers to benefit from elevated returns has reduced supply and pushed vessel prices higher.
The market could face a correction if geopolitical risks ease and shipping through the Strait of Hormuz returns to normal, although freight rates may remain above levels seen in previous years.
