Secondhand crude tanker prices have hit their highest levels for 15 years as owners seek to tap into surging tonne-miles linked to Russia’s war in Ukraine, said shipowner body Bimco.
Five-year-old aframax values have reached 96% of newbuilding prices amid reports of sky-high sales in recent weeks.
Bimco’s chief shipping analyst Niels Rasmussen said a key factor has been the 83% increase in tonne miles from Russia’s oil exports. Previously European Union-bound cargoes have switched to longer-haul destinations in India and China.
Tonne-miles to the EU have also increased 42% since the start of 2022 after the 27-nation bloc found new suppliers from the Middle East and US Gulf to replace Russian barrels, he said.
Crude tanker values hit their lowest levels in 2020, when the combined cost of five-year-old aframaxes, suezmaxes and VLCCs was $138.5m, said Bimco. They are now valued at a combined $231m.
Aided by low orderbook levels, aframax prices have led the way but five-year-old suezmax and VLCC crude tankers are also at 85% and 83% of newbuilding prices, said Rasmussen.
The analysis followed broker reports that Greece’s Capital Ship Management sold a 2017 scrubber-fitted aframax, the South Korean-built 113,000-dwt Aristoklis, for $68.5m, for more than the estimated $66m cost of a newbuilding.
Norwegian shipbroker Cleaves said it was the highest price it had ever seen recorded for such a vessel with the exception of a few sales before the financial crisis in 2008.
“Secondhand crude tanker values for five-year-old ships hit bottom levels in late 2020 and have since increased by an average 67%,” said Rasmussen.
“Over the past 12 eventful months, values have risen by 34%, reaching their highest level in 15 years,” said Rasmussen.
Despite production cuts announced by some Opec+ countries, Rasmussen said the outlook for the crude tanker market remained bright with global oil demand expected to grow.
“There are no signs that EU sanctions will be lifted, and the [International Energy Agency] expects that global oil consumption in 2024 will exceed 2019 levels for the first time since the pandemic hit,” he said.
This story has been updated in light of Bimco correction that crude tankers hit a 15-year high and not 25.
