Crude tanker asset prices have been rising in recent weeks, lifted by a surge in freight rates and tightening vessel availability across global markets, while product tanker values remain strong, reports Lloyd’s List.
Crude tanker asset prices climb sharply
The Baltic very large crude carrier time charter equivalent daily rate hit $118,321 in late November, its highest level since April 2020. Meanwhile, the Baltic suezmax TCE peaked at $94,299 per day on November 18, the strongest level in some three years.
“A recent increase in crude oil tanker asset prices can be attributed to a sharp rise in freight rates,” said Xclusiv Shipbrokers analyst Eirini Diamantara. “Another factor in pushing up asset prices is that many shadow fleet* vessels are tied up in long, inefficient trades or floating storage, which is further reducing the effective supply of compliant tankers,” Diamantara told Lloyd’s List.
Average values of 10-year-old VLCCs have now reached $88m while five-year-old ships are currently around $118m, up by around 4% since the summer. However, 15-year-old ships have risen further and are up by around 8% since August.
With the crude tanker freight markets being so strong, most shipowners are holding on to their ships, and relatively few VLCCs or suezmaxes are being circulated for sale.
“China has been buying more crude, especially long-haul barrels, which increases tonne-mile demand and keeps ships busy for longer periods,” noted Diamantara. “With fewer available vessels and more long-distance cargoes to move, freight rates have stayed very strong. As earnings rise, buyers are willing to pay more for secondhand ships, and this has driven crude tanker values up in the recent period.”
Recently reported VLCC sales included the 2011-built sister vessels Mercury Hope (IMO: 9395290) and Mermaid Hope (IMO: 9395496), which were sold by Cido Shipping. Built in Japan by Universal Shipbuilding, they were purchased by undisclosed buyers for $60m each. Meanwhile, the VLCC Alraya (IMO: 9320831), which was built by Japan’s IHI in 2005, is said to have been sold to Chinese buyers for $45m.
In the suezmax segment, Switzerland-headquartered Advantage Tankers is reported to have sold the 2010-built Advantage Summer (IMO: 9419890) to undisclosed buyers for $40.4m.
Looking ahead, the global crude tanker market is shaping up for a tight first quarter in 2026, with underlying fundamentals pointing to firm utilisation across the larger vessel classes. While headline fleet numbers continue to rise due to an influx of newbuildings, a growing portion of VLCCs and suezmaxes is engaged in sanctioned or shadow fleet trades.
These vessels are effectively removed from mainstream commercial activity, leaving the compliant fleet significantly smaller than raw tonnage figures suggest. As a result, real supply in the spot market remains constrained.
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Source: Lloyd’s List
