‘Market has gone crazy’: Used oil supertankers cost more than new vessels for first time
Used oil supertankers have become more expensive than new vessels for the first time on record as shipowners rush to capitalize on high freight rates in the Persian Gulf, the Financial Times reported on Sept. 28.
The market for used oil supertankers has flipped to being more expensive than new vessels for the first time, according to a report by the Financial Times on Sept. 28. This shift is being driven by high freight rates in the Persian Gulf, particularly for very large crude carriers (VLCCs), which can carry around 2 million barrels of oil.
Prices for 5- and 10-year-old tankers have surged, with some deals closing within days rather than weeks. The average price of a new vessel is $135 million, while older vessels built before 2016 have sold for $150 million or more. Shipowner Alexander Saverys described the market as "crazy," noting that this is a "once-in-a-generation event."
Prices are now determined by the speed of delivery, with older vessels being sold at higher prices to meet the demand for quick turnaround.
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