Second-hand tankers command premium prices

The tanker market has entered a phase, where newbuilds are increasingly emerging as a more rational option than second-hand vessels—provided owners have the capacity to wait.

In the VLCC segment, a 10-year-old vessel is currently valued at around 110 million dollars on average, according to George Moundreas & Co. By comparison, a newbuilding order is priced at approximately 122 million euros, while the resale of a newbuild stands at 145 million. Given that the average lifespan of a VLCC is estimated at 25 years, current market conditions are essentially reshaping the financial and investment rationale underpinning new deals.

This repricing is being driven by a combination of factors, including tensions in the Middle East, uncertainty surrounding the Strait of Hormuz, and a very strong freight market. Greek shipowners have moved quickly to capitalize on this trend, proceeding with large-scale disposals of second-hand tonnage while simultaneously placing a significant volume of newbuilding orders.

Market participants note three main reasons behind this shift.

First, tanker freight rates remain robust, with the Middle East continuing to generate a persistent risk premium—whether due to actual disruptions in trade flows or concerns over potential escalation.

Second, the market places a high value on immediate availability. A second-hand vessel can be deployed almost instantly, whereas a newbuild may take several years to be delivered.

Third, at the top end of the market—and particularly in VLCCs—prices have been supported by aggressive fleet acquisitions by Sinokor, reportedly backed by Gianluigi Aponte.

This aggressive absorption of available tonnage has effectively tightened supply in the secondary market, sustaining elevated asset values.