The VLCC market has experienced a paradigm shift, where older vessels are selling for prices surpassing those of newbuilds. Demand and geopolitical factors have driven valuations sharply upward, with five-year-old ships increasing from $145 million to $172 million. This trend underscores the growing preference for immediate vessel availability amidst rising earnings.
In 2026, shipowners ordered over 217 Very Large Crude Carriers (VLCCs), a significant increase from 93 the previous year, fueled by a $20 billion surge. This demand stems from the US-Iran conflict, reshaping trade routes and prompting refiners to seek alternative oil supplies amid safety concerns in critical transit areas.
Iraq is seeking to hire two oil supertankers through the Strait of Hormuz, reflecting a regional drive among oil producers to gain control over exports. The Iraqi Oil Tankers Co. has issued a tender for very large crude carriers, emphasizing the strategic importance of tanker ownership amid geopolitical tensions and rising demand.
Niels Rasmussen, BIMCO’s Chief Shipping Analyst, predicts a stronger year for crude and product tankers in 2024 despite weaker cargo volumes in the first half of the year. The Tanker Shipping Market Overview & Outlook for August 2024 highlights muted fleet and supply growth as key factors contributing to the predicted strengthening of the supply/demand balance.
