Naftemporiki: Tanker prices on secondary market show signs of stabilization

The most recent example of price correction was recorded in a deal for a 15-year-old VLCC

Tanker prices on the secondary market have shown signs of stabilization over the last weeks, with some deals closing at lower levels, Naftemporiki reported.

“There is the belief that the market has reached a ceiling, but we need to see reduced prices in more than one or two deals to say with confidence that there is a downward trend in prices,” Irini Diamantara and Dimitris Roumeliotis, executives in the Research and Valuations department of the Xclusiv Shipbrokers shipping brokerage house said to “Naftemporiki”.

The most recent example of price correction was recorded in a deal for a 15-year-old VLCC, which, according to freight brokers, changed hands for 53 million US dollars. Based on data from Xclusiv Shipbrokers, the value of a ship of this type and age normally approaches 58 million dollars.

Less deals
“We are seeing a stabilization in the market and many buyers are trying to secure better prices,” the analysts of Xclusiv Shipbrokers noted. “Given the sluggishness in overall activity in used tankers through 2024, each vessel put up for sale is managed differently, depending on the supply of corresponding vessels in the market at the given time, the level of freight rates and other conditions,” they added.

Deals for second hand tankers are down about 37% year-on-year. In particular, according to Xclusiv Shipbrokers, so far this year approximately 240 tankers, with a capacity of more than 10,000 dwt, have “changed hands”, compared to 379 vessels in the corresponding period last year. Of course, we should note that this year’s number is about 20% higher than the rate of sales of the last 10 years, as reported by shipping sources (based on data for the first five months).

This reduced activity is possibly linked to high prices, which reached a 15-year high this year, but also to enhanced interest in new orders.