Second-hand tankers command premium prices

The tanker marketplace has entered a phase, where newbuilds are progressively emerging arsenic a much rational enactment than second-hand vessels—provided owners person the capableness to wait.

In the VLCC segment, a 10-year-old vessel is presently valued astatine astir 110 cardinal dollars connected average, according to George Moundreas & Co. By comparison, a newbuilding bid is priced astatine astir 122 cardinal euros, while the resale of a newbuild stands astatine 145 million. Given that the mean lifespan of a VLCC is estimated astatine 25 years, existent marketplace conditions are fundamentally reshaping the fiscal and concern rationale underpinning caller deals.

This repricing is being driven by a operation of factors, including tensions successful the Middle East, uncertainty surrounding the Strait of Hormuz, and a very strong freight market. Greek shipowners person moved rapidly to capitalize connected this trend, proceeding with large-scale disposals of second-hand tonnage while simultaneously placing a important volume of newbuilding orders.

Market participants enactment three main reasons down this shift.

First, tanker freight rates stay robust, with the Middle East continuing to make a persistent hazard premium—whether owed to existent disruptions successful trade flows oregon concerns implicit imaginable escalation.

Second, the marketplace places a precocious value connected contiguous availability. A second-hand vessel tin beryllium deployed astir instantly, whereas a newbuild whitethorn take respective years to beryllium delivered.

Third, astatine the top extremity of the market—and peculiarly successful VLCCs—prices person been supported by assertive fleet acquisitions by Sinokor, reportedly backed by Gianluigi Aponte.

This assertive absorption of available tonnage has efficaciously tightened supply successful the secondary market, sustaining elevated plus values.