CRUDE oil tanker values have been rising in the past month following trade disruptions which have boosted voyage lengths and subsequently spot rates and time charter rates.

Average asset prices of secondhand very large crude carriers are trending some 4% higher than values in May, with 10-year-old units currently valued at $87m, according to broker assessments.

Xclusiv Shipbrokers analyst Eirini Diamantara said that the rise in values of VLCCs had been supported by several key freight market factors.

“Stronger demand for crude oil shipping provided by increased production by the US and Middle East has boosted tonne-mile demand as geopolitical tensions and sanctions involving Russia and Venezuela have forced crude trade onto longer, alternative routes,” Diamantara told Lloyd’s List.

She said that this shift had tightened vessel availability and contributed to higher crude tanker spot and time charter rates.

“Seasonal factors such as summer refinery maintenance and stockpiling have also added mid-year pressure on crude tanker demand,” said Diamantara.

Meanwhile, product tanker values have stabilised following almost continued declines since the second quarter of 2024. Values of 10-year-old medium range product tankers are currently around $30m, down by some 20% year on year.

Regional product tanker trades have benefitted from fewer geopolitical disruptions compared to the crude carrier trades, which has kept volatility and sudden demand spikes in check.

“As long as geopolitical tensions persist, crude production stays strong, and route inefficiencies continue, current trends in asset pricing are likely to be sustained,” said Diamantara.

A total of 221 tanker sales were concluded in the first half of this year, slightly down from the 243 deals in 1H24. Medium range product tankers have proven the most popular segment and accounted for 27% of all sales in 1H25.

Interest in MR units is chiefly due to their versatility in trading both clean and dirty products together with strong freight earnings in recent months, particularly in intra-regional trades where flexibility is key.

The aframax/long range two segment also saw solid demand with 36 secondhand ships being sold for further trading, supported by firm freight rates in both dirty and clean markets, especially on long-haul trades. LR2s have benefitted from shifts in refined product flows.

A total of 31 VLCC sales were recorded in 1H25, indicating sustained buying interest despite higher capital requirements.

Diamantara said that interest in secondhand VLCCs is likely linked to optimism by shipowners for a longer-haul crude oil demand recovery with a future market being tightened by limited large crude carrier newbuilding deliveries.

Recent tanker sales reported by shipbrokers included the 18-year-old VLCC Atlantic Loyalty (IMO: 9312509) which was sold by South Korea’s Sinokor to undisclosed owners for circa $44m.

In the medium-range segment, Singapore owners have sold the 2009-built Harris (IMO: 9379038) to Nigerian owners for $17.2m.

During 1H25 a total of 102 new tankers were ordered, led by the suezmax segment with 33 vessels contracted. Only 10 VLCC newbuildings were confirmed as ordered in the first six months of this year. The VLCC orderbook to fleet in service ratio is currently 11.5% and is amongst the lowest in the tanker sector while 16.7% of the VLCC fleet is aged 21 years or over.

While newbuilding contracting volumes are down by 80% compared to 1H24 levels, Diamantara believes that more shipowners are now focused on future-proofing their fleets, mindful of upcoming regulatory hurdles and the gradual tightening of available shipyard slots.

Meanwhile, ship recycling has picked up from the negligible levels of 2024. In 1H25, the equivalent of 1.9m dwt of tanker capacity was sold for recycling, already surpassing the totals of full year 2024, when 1.12m dwt was scrapped, and 2023 when only 0.77m dwt was sold for recycling.

“Overall tanker recycling remains subdued by historical standards but the underlying fundamentals suggest that a larger wave of scrapping is overdue,” said Diamantara.

Some 17.5% of the tanker fleet is now 21 years of age or older. In the past, such vessels would normally be destined for breakers yards due to vessel age restrictions imposed by oil major charterers.

“Current market dynamics are delaying the natural cycle of ship recycling. Freight rates remain healthy, buoyed by geopolitical tensions, shifting trade flows, and a steady demand for sanctioned oil trades — especially Iranian and Venezuelan barrels,” noted Diamantara.