Buyers urgently needing Very Large Crude Carriers (VLCCs) are now paying premiums of up to 35% to acquire secondhand vessels.
Data from shipping analytics firm Signal Ocean shows that geopolitical risks have not diminished market demand for VLCC capacity; the transaction price of a 5-year-old secondhand VLCC has already exceeded the cost of a new ship of the same type.
From the end of 2025 to the beginning of 2026, South Korean shipowner Sinokor Maritime’s near-frenzied expansion of its VLCC fleet has driven up secondhand prices for this vessel type, and this upward trend is expected to continue following the outbreak of conflict in the Middle East at the end of February 2026.
Signal Ocean analysts have assessed that, 60 days after the outbreak of the Middle East conflict and with the current de facto blockade of the Strait of Hormuz, the depreciation curve for VLCC secondhand vessels appears to have disappeared. In its latest tanker market monitoring report, the agency stated: “Normally, secondhand vessels command a moderate premium because there is no waiting period for delivery, but the transaction price of a 5-year-old secondhand vessel should be significantly lower than the cost of a new vessel. However, neither of these conditions currently exists.”
Currently, the resale price of a 5-year-old VLCC has reached $138 million, $9 million higher than the average new ship cost of $129 million. For buyers seeking immediate shipping capacity, acquiring a second-hand vessel requires a premium of 21% to 35%, more than $45 million higher than the new building cost. If calculated with a 35% premium, the resale price of a 5-year-old VLCC would reach $174.5 million.
This situation is not limited to the VLCC segment; for Suezmax tankers, newbuilds and 5-year-old secondhand vessels are priced at the same level, both at $88 million. Secondhand vessels command a 22% premium, with prices reaching as high as $107.5 million.
In the Aframax tanker sector, 5-year-old secondhand vessels command a 2% premium over newbuilds, or $1.6 million more. Signal Ocean data shows that secondhand vessels are priced at $88.9 million, approximately 21% higher than the $73.2 million cost of newbuilds.