Xclusiv Shipbrokers data shared with Riviera shows that between January and mid-September, a total of 103 VLCCs and 52 Suezmaxes changed hands in the secondhand market.
“The VLCC market exploded at the start of the year, then slowed down somewhat before heating up significantly again during the summer and into September,” Xclusiv Shipbrokers research analyst Dimitris Roumeliotis told Riviera. Suezmax sales have been more stable in terms of monthly volumes.
Riviera recently reported that VLCCs were earning more than US$1M per day in the spot market for voyages from the Middle East Gulf.
This has, unsurprisingly, also benefited asset values. A 19-year-old VLCC built in South Korea was sold in January for around US$51M. This month, an 18-year-old vessel, also built in South Korea, was reportedly purchased for US$90M.
“This represents an increase of almost US$39M, or approximately 76%, for a vessel of a similar age over a period of just eight months,” Mr Roumeliotis said.
There are numerous similar examples in the market. A 17-year-old, Korean-built VLCC was reportedly sold in September for US$111M, while a 2016-built vessel changed hands in January for just over US$104M.
Resale deals are also commanding significant premiums. One Chinese-built VLCC for 2026 delivery was reportedly sold last May for US$162.5M, while a recent transaction this month put the value of a vessel of similar specifications at an extraordinary US$200M.
“The 23% difference in just four months demonstrates how significantly modern/resale tonnage has been repriced,” Mr Roumeliotis added.
Similar premiums are also being observed in the Suezmax market, where charter rates are also climbing.
Two 19-year-old Korean-built Suezmaxes were sold at a 30% price difference between January and September, with reported prices of US$52M and US$68M respectively.
Even older assets are attracting strong interest. A 2005-built Suezmax constructed by HD Hyundai was recently reported sold for US$47M, while another vessel of the same specifications changed hands for US$25M at the beginning of the year.
“In practical terms, this represents almost a doubling in value within approximately eight months for a very similar asset profile,” said Mr Roumeliotis.
Among mid-aged units, a 2011-built Suezmax was sold for close to US$80M in September, while a vessel one year younger changed hands in April for US$60M.
“The market has not just remained firm, but it has moved to new levels,” Mr Roumeliotis commented.
Emphasis on Korean-built and older assets
This year’s transactions also show that South Korean-built and older tonnage have been among the most sought-after assets in the market.
In the VLCC market, Mr Roumeliotis said 55 of the 103 VLCCs sold were built in South Korea, representing a 53% share. Chinese- and Japanese-built vessels followed, with 31 and 16 ships sold respectively.
South Korea is even more dominant in the Suezmax segment, accounting for around 75% of transactions, with 39 of the 52 vessels sold having been built there. Chinese-built units followed with 10 ships.
In terms of age, Mr Roumeliotis said that the majority of liquidity in the VLCC market is concentrated in mid- and older-aged assets. Of the 103 vessels sold, 43 were in the 11-to-15-year age bracket, while another 41 were 16 years old or older. A further 14 vessels were between six and 10 years old, while just five were five years old or younger.
“Buyers are moving increasingly further down the age curve, as the availability of modern tonnage remains limited and asking prices remain high,” Mr Roumeliotis explained.
The Suezmax market, meanwhile, is active at both ends of the spectrum, with demand for both modern/resale tonnage and considerably older vessels, he added.
A total of 16 of the 52 vessels sold were up to five years old or newbuilding resales, while 21 vessels were 16 years old or older. Another 10 ships were between 11 and 15 years old, with five aged between six and 10 years.
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