Demand soars for older VLCC tonnage

Values for tankers have increased for all sectors and age ranges since the start of the year, according to data compiled by VesselsValue maritime analyst Rebecca Galanopoulos Jones.

For VLCCs, prices for 20-year-old vessels have increased 51% from January 2022 to November 2022 to reach a height of US$38.9M.

Among the sales that VesselsValue includes as notable are Shiblah (316,500 dwt, built 2003 by Hyundai Heavy Industries) which sold to Chinese buyers for US$42.0M, and SS Due, a sale that VesselsValue valued at US$40.3M.

The company’s market tracking shows VLCC earnings "remain firm" after hitting a 17-month high in October 2022, with day rates averaging US$75,876 on the TD3C-TCE Middle East Gulf to China route. VesselsValue attributed this to strong demand from Asia and Europe.

"These regions are looking to secure energy ahead of the Northern Hemisphere winter and the upcoming EU sanctions on Russian oil," VesselsValue reported.

"There is growing speculation the tanker market will now split into two categories, those that were operating in Russian waters who will now move to other trades and those seeking to capitalise on the premiums resulting from Russian trades despite sanctions, often trading in the ‘dark fleet’."