Despite downward pressure on values, the VLCC (Very Large Crude Carrier) market appears to have found a floor, with 5-year-old 320,000 DWT vessels maintaining relatively stable pricing since early 2024. However, a sharp decline in sale-and-purchase (S&P) activity indicates growing market caution as global trade dynamics shift.
Asset Values Stabilize After Steady Decline
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VLCC values dropped ~4.1% year-on-year, from USD 113.88M to USD 109.21M.
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Since January 2024, prices for 5YO VLCCs have remained above USD 107M, marking levels not seen since November 2008.
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This plateau may indicate the market has hit a value floor in the current cycle.
Sales Volume Plummets Amid Tariff Concerns
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VLCC sales fell ~67% YoY, with just 19 vessels sold in the first four months of 2025 compared to 58 in 2024.
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Chinese-built vessels are less frequently transacted, possibly due to new U.S. tariff threats.
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Market participants appear increasingly cautious, reflecting both regulatory uncertainty and a scarcity of quality tonnage.
Charter Rates Edge Up, Driven by Geopolitical Shifts
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Time Charter (TC) rates rose by ~5%, now averaging USD 47,000/day, up from just under USD 45,000/day last year.
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Demand for VLCCs remains stable due to:
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Middle East tensions
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Russian crude sanctions
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OPEC production shifts
These factors are supporting long-haul crude trades and favouring large tanker utilization.
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Notable Transactions Reflect Mixed Sentiment
Eurohope (2007-built, 306,500 DWT) sold to Chinese buyers for USD 46.25M, above its VV valuation of USD 45.07M. Australis (2003-built, 299,100 DWT) fetched USD 28M from SEACON as an FSU without BWTS, notably below its USD 33.14M VV.
While values and earnings remain stable, the collapse in S&P activity signals hesitancy. Market fundamentals—geopolitical uncertainty, tariffs, and regulatory shifts—will likely determine the VLCC sector’s trajectory through the remainder of 2025.
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Source: VV Blog
