Tanker Asset Values Surge Across All Age Segments, Outpacing Newbuilding Prices

The current asset market for tankers is characterised by a re-pricing that extends across the entire age curve, intensifying with vessel age, Hellenic Shipping News Worldwide reported on 8th September 2026.

Five-year-old tonnage is trading above newbuilding prices, but appreciation becomes more pronounced for older vessels. VLCC values have increased by 30% year-over-year for five-year-old vessels, 42% for ten-year-old vessels, 61% for fifteen-year-old vessels, and 90% for twenty-year-old vessels. A similar trend is observed in the Suezmax curve, with gains of 37%, 43%, 64%, and 78% respectively across the same age categories.

A twenty-year-old VLCC is now assessed at $71.1 million, and an equivalent Suezmax at $52.1 million. This occurs despite both vessel types being closer to the end of their conventional trading lives.

Vintage Tonnage Versus Scrap Value

The re-pricing of assets extends to vessels nearing the end of their operational lifespan. A twenty-year-old VLCC is assessed at $71.1 million, compared to $20.8 million for scrap, representing a spread of $50.3 million. This spread is 3.4 times the recycling value. One year prior, the implied spread was approximately $18 million. For Suezmaxes, a twenty-year-old vessel valued at $52.1 million contrasts with $11.9 million for scrap, yielding a $40.2 million spread, or 4.4 times the recycling value.

This valuation disparity affects disposal decisions. While special survey costs, sanctions status, insurance, and vetting can still necessitate individual vessel removals, the economics alone suggest that a commercially employable vintage ship holds substantially more value in continued trading than for demolition.

Escalating Freight Premiums East of Suez

Geopolitical developments in the Strait of Hormuz have contributed to heightened freight premiums, particularly for routes East of Suez. Hellenic Shipping News Worldwide reported military escalation replacing diplomacy in the region, with commercial tankers being directly involved in military contests. This has led to increased risks, including projectile attacks, Iranian routing restrictions, US naval operations, and blacklist exposure. War risk cover premiums for higher-risk voyages are estimated to be around 7.5–10% of hull value, compared to approximately 0.25% before the conflict.

These conditions have significantly impacted earnings. East of Suez, VLCC time-charter-equivalents from the Middle East Gulf to Singapore (TD2) are running near $702,000/day, representing over 900% above a year earlier. West of Suez VLCC routes, such as West Africa–China (TD15) at $219,000/day and US Gulf–China (TD22) at $208,000/day, have also firmed by more than 20% on the week. East-of-Suez earnings remain roughly three times their Western counterparts. Laden VLCC availability East of Suez has decreased by 36% year-on-year to 122 vessels on a 30-day average, while West of Suez, laden VLCC availability increased by 15% to 60 vessels.