- The once scorching hot used tanker market seems to be tempering, with prices showing signs of stabilization and deals closing at lower figures compared to recent highs.
- Analysts believe this could be the start of a correction after a period of significant price increases.
According to Xclusiv Shipbrokers, a recent deal involving a 15-year-old VLCC (Very Large Crude Carrier) exemplifies this potential shift. The vessel sold for $53 million, falling short of the typical price tag of $58 million for such a ship. This instance suggests a potential softening in prices after a period of sustained growth.
However, analysts caution against declaring a definitive downward trend just yet. More data is needed to confirm a clear shift. Additionally, the used tanker market remains a dynamic environment. Individual ship sales can be influenced by various factors, including the current supply of similar vessels, prevailing freight rates, and the specific condition of the ship itself.
Market Activity Slows Down
While price stabilization is a possibility, another noteworthy trend is the slowdown in overall market activity. Compared to 2023, sales of used tankers have seen a significant decline in 2024. Data from Xclusiv Shipbrokers reveals that only around 240 tankers have been sold so far this year, a stark contrast to the 379 vessels sold during the same period last year.
This sluggishness could be attributed to a combination of factors. The high prices in the used market might be deterring some potential buyers. Additionally, there might be a shift in buyer interest towards acquiring new tankers instead.
Market at a Crossroads
The tanker market is at a crossroads. While signs of price stabilization and a decline in deals suggest a potential cooling down, the market remains fluid. More data and time are needed to paint a clearer picture of the future trajectory.
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Source: Port News
