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
-
VLCC values dropped ~4.1% year-on-year, from USD 113.88M to USD 109.21M.
-
Since January 2024, prices for 5YO VLCCs have remained above USD 107M, marking levels not seen since November 2008.
-
This plateau may indicate the market has hit a value floor in the current cycle.
Sales Volume Plummets Amid Tariff Concerns
-
VLCC sales fell ~67% YoY, with just 19 vessels sold in the first four months of 2025 compared to 58 in 2024.
-
Chinese-built vessels are less frequently transacted, possibly due to new U.S. tariff threats.
-
Market participants appear increasingly cautious, reflecting both regulatory uncertainty and a scarcity of quality tonnage.
Charter Rates Edge Up, Driven by Geopolitical Shifts
-
Time Charter (TC) rates rose by ~5%, now averaging USD 47,000/day, up from just under USD 45,000/day last year.
-
Demand for VLCCs remains stable due to:
-
Middle East tensions
-
Russian crude sanctions
-
OPEC production shifts
These factors are supporting long-haul crude trades and favouring large tanker utilization.
-
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.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: VesselsValue
