- Sanctions and Long-Haul Trades Reshape Tanker Asset Plays.
- Global Buyers Stay Active as Tanker Values Remain Firm.
- Tanker SnP Market Elevated on Earnings and Trade Shifts.
The tanker sale and purchase market for 2025 is buzzing with activity, driven by robust freight earnings, longer trade routes, and the ongoing effects of sanctions on Russian crude and product flows. The demand for tonne-miles is high, and with a limited fleet supply, asset values across various segments are holding strong, reports Safety4Sea.
Buyer Activity and Capital Sources
There’s a wide range of buyers in the market, and their confidence is evident. Undisclosed buyers are leading the pack with 152 acquisitions, showcasing a steady interest from private capital, commodity-linked players, and entities related to shadow fleets. Greek buyers are close behind with 64 purchases, just ahead of China at 61, while the UAE is making its mark with 19 vessels, signalling its growing influence in tanker trading. Additionally, the rest of the world has acquired 101 ships, highlighting the global liquidity that’s backing this market.
Seller Trends and Fleet Rotation
On the selling front, owners are seizing the opportunity presented by peak pricing. Greece is at the forefront with 74 sales, followed by China with 40 and Singapore with 36. Sales from South Korea and other regions indicate a routine fleet rotation rather than a retreat from the market. Similar to the dry bulk sector, owners are cashing in on older vessels while confident buyers are still eager to absorb the supply.
Segment-Focused Acquisition Strategy
The buying patterns of Greek investors reveal the market’s underlying logic. MR2s are the most sought-after, driven by strong demand for clean products, shifts in refinery operations, and longer export routes. Purchases of Aframax/LR2 and Suezmax vessels reflect ongoing earnings from US Gulf exports and the inefficiencies in Russian trade routes. The limited interest in VLCCs underscores the scarcity and capital-intensive nature of modern large crude tankers.
Age Profile and Asset Selection
When it comes to asset age profiles, there’s a clear strategy in capital deployment. MR2 purchases tend to focus on mid-age vessels that strike a balance between price and longevity. In contrast, Aframax/LR2 acquisitions lean towards younger ships, reflecting a strong belief in the medium-term market fundamentals. Meanwhile, older Suezmax and VLCC units remain attractive due to their high earnings and the dynamics of long-haul trade.
Disposals and Fleet Renewal
Sales are primarily focused on older vessels across all key segments, suggesting a trend towards fleet renewal instead of a decline. Owners are selling off their vintage ships at favourable prices while either maintaining or upgrading their overall fleet.
Fundamentals and Outlook
The fundamentals for tankers are looking strong. Crude tonne-miles are hitting near-record highs as trade routes expand, product markets remain tight due to refinery adjustments, and order books are still under 10%. In this context, we can expect strategic fleet adjustments, ongoing growth in Asia, and the continued integration of older vessels to keep the tanker sales and purchase market buzzing through 2025.
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Source: Safety4Sea
