VLCC Resales Command Record Premium Over Newbuilds

Resale values for very large crude carriers (VLCCs) have surged to unprecedented levels, outpricing newbuild prices by a record $39.5 million, according to data from Clarksons Research. The benchmark TD3C earnings for VLCCs have surged to over $200,000 per day, a level not seen since May 2020, while one-year charter rates are in excess of $60,000 per day. This has driven resale prices for modern VLCCs to command the greatest premium over newbuild prices in the 60-year history of the supertanker segment. 'The VLCC resale premium over newbuild prices has reached a record high of $39.5m, surpassing the previous record of $35m seen in 2008,' Clarksons said in a recent report. 'This reflects the strength of the VLCC market, with earnings and charter rates at multi-year highs.' The surge in VLCC resale values comes as shipowners and investors seek to capitalize on the booming tanker market, with strong demand for crude oil transportation services globally. The premium for modern, fuel-efficient VLCCs is also being driven by concerns over the availability of newbuild tonnage, with shipyards facing long order backlogs. 'Owners are willing to pay a premium for modern, eco-efficient VLCCs given the strength of the market and the limited availability of newbuild slots,' said a broker at Clarksons Platou Securities. 'This is a remarkable development in the VLCC sector.'