An overview of the current crude and product tanker markets shows sustained high asset values and strong earnings, supported by limited vessel supply and extended geopolitical trade patterns. The recent delay in the International Maritime Organization’s (IMO) Net-Zero Framework (NZF) is also expected to have a stabilizing effect on secondhand values.
Tanker Asset Values and Earnings
Crude oil and product tanker asset values remain at historically elevated levels, with analysts suggesting potential for further appreciation:
- Asset Value Stability: Values across all vessel types are broadly stable due to steady earnings and a limited supply of quality tonnage. Sentiment remains firm among owners.
- Crude Tanker Strength: The upswing in “oil in transit” volumes, fueled largely by delivery delays for sanctioned barrels and the growing impact of Western sanctions on non-compliant tonnage, continues to provide strong support for compliant crude tanker rates.
- Q3 2025 Performance: The third quarter was robust for most segments:
- Baltic MR Atlantic Basket: Averaged $28,747 per day, the highest since 3Q24.
- Baltic MR Pacific Basket: Averaged $23,501 per day, the best since 2Q24.
- Baltic Suezmax TCE: Reached $48,720 per day, the strongest level since 4Q23.
- Baltic VLCC TCE: Reached $46,963 per day, its highest point in over five years.
- Current Rates (Late October): Rates remain firm and have climbed higher for the largest segments:
- MR Atlantic: $30,707 per day.
- MR Pacific: $21,647 per day.
- Suezmax TCE: $70,424 per day.
- VLCC TCE: $82,608 per day.
- Market Outlook: The market is “well-positioned for a potential upward correction towards the end of 2025,” driven by limited newbuilding slots, tight secondhand availability, and sustained demand.
Tanker Sale and Purchase Market Activity
The sale and purchase (S&P) market has been robust, with a two-tier structure dominating sales activity:
- High Activity: A total of 37 deals were reported since the beginning of October.
- Modern Tonnage Preference: The majority of recent sales involved younger ships, with buyers strongly favoring modern, fuel-efficient tonnage.
- Demand is concentrated on the Aframax/Long Range Two (LR2) segment.
- Buyers favor eco-design tankers built between 2015 and 2020 for their balance of acquisition cost, fuel efficiency, and immediate trading potential.
- Vintage Tonnage Demand: Interest in older vessels persists, particularly in the crude oil segment (Suezmaxes and VLCCs), which attract buyers operating in less regulated or higher-risk trades.
- Notable Sales:
- VLCC: The 2016-built, scrubber-fitted sister vessels Landbridge Fortune and Landbridge Prosperity (308,000 dwt) were sold for a reported $85.8 million each.
- Suezmax: The four-year-old sisterships Crude Levante and Crude Zephyrus (157,000 dwt) were reportedly sold for $78 million apiece.
Impact of IMO Net-Zero Framework Delay
The postponement of the IMO Net-Zero Framework (NZF) discussions is expected to have a short-term positive effect on secondhand values:
- Extended Trading Horizon: The delay and dilution of regulatory clarity effectively extends the commercial trading life for existing tonnage, especially older, non-eco units in the crude and dry bulk sectors.
- Postponed Depreciation: The absence of binding emission-intensity thresholds or carbon-pricing mechanisms means that asset depreciation linked to environmental compliance risk is postponed for at least one year.
- Secondhand Market Support: This reprieve could stabilize or lift secondhand values in the short term, as buyer confidence is restored that today’s ships will not become prematurely obsolete.
- Newbuilding Uncertainty: Uncertainty surrounding the IMO’s eventual regulatory direction is tempering enthusiasm for newbuilding commitments, reinforcing capital concentration in the secondhand market and supporting its liquidity and values.
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Source: Lloyd’s List
