Tanker Prices Skyrocket as the Market Hungers for Prompt Tonnage

The tanker Sale and Purchase (S&P) market is entering an unusually heated phase as the demand for prompt tonnage continues to rise, pushing maritime asset values to levels unseen in recent years. This strong market rally is not only driving up resale vessel prices but also rendering traditional valuation and depreciation models practically obsolete.

A Slew of High-Priced Transactions Stirs the Market

According to the latest data from Clarksons Research, a series of recent S&P transactions illustrates the dramatic price escalation in the tanker segment.

Notably, Trafigura has just completed the acquisition of the Very Large Crude Carrier (VLCC) Las Palmas—a newbuild resale vessel with a capacity of approximately 306,000 DWT, equipped with a scrubber system, and currently under construction at Hengli Shipbuilding. The vessel is scheduled for delivery in 2026, with the transaction price reportedly exceeding $160 million.

Meanwhile, Teekay Tankers has also signed an agreement to purchase two newbuild Suezmax vessels at DH Shipbuilding for a total value of approximately $190 million, equating to $95 million per vessel. These two ships, boasting a capacity of about 157,000 DWT, are slated for delivery in 2027.

Traditional Valuation Models Upended

A notable aspect of the current market is that tanker values are gradually detaching from the depreciation principles that have served as shipping industry standards for years.

According to an analysis by Signal Ocean, prolonged tensions in the Strait of Hormuz have created an abnormal market state, where the factor of "immediate operational readiness" has become more critical than the vessel's age or traditional depreciation logic.

Under normal conditions, older vessels depreciate over time, and resale ships only command a moderate premium for saving buyers the wait time of a newbuild. However, the current market is moving in the exact opposite direction.

Signal Ocean reports that a 5-year-old VLCC is currently valued at up to $9 million more than the order price for a newbuild in South Korea. In the Suezmax segment, the price gap between modern secondhand vessels and newbuilds has been virtually erased. The Aframax segment is also exhibiting a similar trend.

Buyers Willing to Pay Hefty Premiums for Early Delivery

The tonnage fever is also pushing the resale market into a fiercely competitive state.

According to Signal Ocean, buyers are now willing to pay a premium ranging from 21% to 35% over standard newbuild prices just to secure earlier delivery. In the VLCC segment alone, the price spread between a resale and a newbuild has now reached approximately $45.5 million—a figure considered unprecedented in previous market cycles.

Signal Ocean noted: "Under normal market conditions, resale vessels only command a modest premium due to the advantage of prompt delivery time."

However, the organization also emphasized: "At present, that logic is almost entirely invalid."

The Tanker Market Enters a New Valuation Era

Analysts suggest that current developments clearly reflect a short-term shortage of operationally ready tonnage, particularly as geopolitical risks in the Middle East continue to drive oil transport demand and lengthen the voyages of the global fleet.

Amid lengthening newbuild lead times and constrained capacity at major shipyards, the ability to access immediately employable vessels is becoming the defining factor of asset value.

This also indicates that the tanker market is no longer priced primarily on vessel age or steel value, but is shifting heavily toward a valuation model based on cash flow generation capability and operational readiness in a highly volatile environment.

See more:

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• CMA CGM Implements Peak Season Surcharge from South China and Hong Kong
• Maersk: Iran War is Adding $500 Million in Costs per Month - And Customers Will Have to Shoulder a Portion
• International Shipping and Logistics Market Update Week 19/2026 | Phaata
• Hormuz Traffic in Freefall: Iran Tightens Its Grip as the World Waits to See What 'Reopening' Really Means
• Yang Ming Expands Far East - Latin America Service Network Through Agreements with HMM and ONE
• Maersk Q1 2026: Solid Growth Despite Freight Rate Pressures and Geopolitical Instability
• COSCO schedules: Vietnam - North America in May 2026
• SITC updates Vietnam-Intra Asia sailing schedules in May 2026

Source: Phaata.com (According to Splash247)

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