- The tanker market, which experienced a strong bull run throughout most of 2024, is beginning to cool, according to a report by VesselsValue, a Veson Nautical solution.
- High tanker values, coupled with reduced sales and market uncertainty, have contributed to this slowdown.
Tanker Market Trends
The tanker market, buoyed by strong performance in 2024, is showing signs of deceleration, as highlighted in Vessels Value’s latest report, High Tide Ebbs for Tanker Market Amid Uncertainty and High Values. Despite tanker values reaching their highest levels since 2009, the fourth quarter of 2024 has seen a significant dip in sales activity, reports Container News.
Decline in Tanker Sales
According to the report, only 43 large tankers have been sold in the fourth quarter so far, a steep drop compared to the 120 vessels sold in the first quarter of the year. These sales include:
- Six VLCCs (Very Large Crude Carriers)
- 28 Suezmax tankers
- Nine Aframax vessels
This sharp decline reflects broader market hesitations, despite the high asset values observed this year.
Market Dynamics and Contributing Factors
The report cites several factors influencing the slowdown:
- High Prices: Elevated tanker values have made transactions less attractive to potential buyers.
- Weak Chinese Demand: As one of the world’s largest oil consumers, reduced demand from China has impacted the global tanker trade.
- Geopolitical Uncertainty: Concerns over changes in U.S. trade policies under President-elect Donald Trump have added an element of unpredictability to the oil trade and tanker market.
Expert Insight
Rebecca Galanopoulos, Senior Content Analyst of Valuation & Analytics at Veson Nautical, remarked, “Sales have slowed as a result of very high prices and weak demand from China, combined with uncertainty over the recent US elections and what the incoming President Trump may hold in store for the oil trade.”
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Source: Container News
