Older Supertanker Prices Surpass New Builds Amid Record-High Freight Rates

In an unprecedented market development, the sale price for older supertankers has climbed above the cost of new-build vessels for the first time on record, according to shipbrokers. The inversion is driven by shipowners rushing to capitalize on soaring freight rates, which now place a significant premium on immediate vessel availability.

Price Inversion Driven by Rate Surge

Record-high freight rates for very large crude carriers (VLCCs) on the Middle East-to-Asia route, reaching $1.2 million per day, are fueling intense demand for operational tankers. This has pushed the value of used vessels to new heights.

• Several ships built before 2016 were recently sold for $150 million or more.
• In contrast, the average price for a new-build supertanker is approximately $135 million.

According to shipbroker Braemar, prices are now primarily determined by how quickly a vessel can be delivered to its new owner. As a result, deals for five- and 10-year-old vessels are reportedly being finalized in days rather than the typical weeks.

State-Owned Companies and Traders Lead Buying Spree

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The surge in demand is led by Middle Eastern state-owned oil companies seeking greater control over their export fleets. The United Arab Emirates’ state energy group, Adnoc, has purchased at least six supertankers in the past two months, according to maritime consultancy Drewry. Shipbrokers also report that Kuwait’s national oil company and buyers for Iraqi crude are active in the market.

These state-backed entities are competing with major commercial players. South Korea’s Sinokor, which acquired around $6 billion worth of tonnage earlier this year, remains a dominant force. Commodity traders like Trafigura have also been purchasing supertankers to manage logistics and protect margins.

Market Impact

The premium for prompt delivery is evident in recent transactions. A recently built tanker owned by Dynacom was sold for $200 million, one of the highest prices ever recorded, due to its immediate availability. Another vessel scheduled for an October delivery fetched $169 million.

This buying frenzy has lifted the entire asset class, with overall tanker values increasing by a third compared to the same period last year. The focus on immediate deployment has fundamentally altered the traditional pricing structure, where newer ships command the highest values.