- VLCC Owners Enjoy Exceptional Profits Amid Sanctions and Low Supply.
- Older VLCCs See $5 Million Value Gain Since Start of Year.
- Suezmax Segment Emerges as Strong Alternative to Costly VLCCs.
VLCC freight rates have skyrocketed past $100,000 a day, thanks to an increase in OPEC+ output and a significant rebound in tanker demand. This surge has also driven second-hand vessel prices to new heights in October. Analysts predict this momentum will carry into the fourth quarter of 2025, fueled by tight tonnage supply and the arrival of seasonal winter demand. The supply of vessels has become so constrained that even 10-year-old VLCCs are now selling for prices close to what they originally cost when built. Meanwhile, Suezmax and Aframax values have remained steady through the third quarter of 2025, but they are expected to break previous records in the last quarter of 2025 as the limited availability of VLCCs increases demand for smaller tankers, reports Drewry.
VLCC Owners Reap Exceptional Profits
This year has been incredibly lucrative for VLCC owners, with earnings surpassing last year’s already impressive figures. The surge has been driven by robust stocking activity, increased OPEC+ output, and a dwindling number of available vessels. Heightened sanctions have further limited effective tonnage, tightening supply and driving rates even higher. Consequently, VLCC earnings have reached unprecedented levels and are expected to stay strong for the remainder of the year, supporting record second-hand values. By October, VLCC prices across all age groups hit all-time highs, surpassing last year’s records. Older vessels, particularly those over 15 years old, have seen the most significant increases, rising by about $5 million since the beginning of the year.
Suezmax: The Second-Best Bet
With VLCC availability becoming more restricted, the Suezmax segment has emerged as the next go-to option for charterers. A surge of new deliveries this year has provided some flexibility to the fleet, allowing Suezmaxes to meet the growing demand as a more affordable alternative to pricey VLCCs. Additionally, increasing crude flows from Kazakhstan to Asia have bolstered Suezmax employment, as sanctions continue to shift traditional trade routes.
Demand Strength Spreads to Smaller Segments
The strong demand in the East of Suez has really boosted Suezmax earnings, with rates for Middle East–West Coast India now surpassing $85,000 a day. This thriving market has sparked a surge in second-hand activity across all tanker classes since September, picking up even more steam in October. It looks like the success in the VLCC and Suezmax segments is now trickling down to smaller vessel types, including the Aframax fleet.
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Source: Drewry
