VLCC tankers are going through a very good period, as their daily charter rate has even exceeded $200,000 per day, while time charters have reached up to $100,000 per day!
The VLCC market is “hot”, mainly due to the combination of US-Iran tensions and Sinokor’s control of nearly 25% of the VLCC spot market.
This week, spot charters reached and exceeded $200,000 per day, while time charters exceeded $100,000 per day for one year.
In the spot market, the VLCC DHT Jaguar, built in 2015, was chartered for $208,000 per day by Bahri Oil Transportation. The Maran Dione, built in 2023, was also reported to have been chartered by Bahri at $199,000 per day, according to Tankers International.
On Tuesday, the VLCC Red Nova of Zodiac Maritime, built in 2013, was reported to have been chartered for $214,000 per day by Petrobras.
Meanwhile, the time charter market exceeded $100,000 per day for a one-year period, which Maritime Strategies International (MSI) described as “unprecedented levels for such an extended period” in the latest monthly Horizon tanker report. DHT Holdings reported that it has time-chartered the DHT Redwood, built in 2011, at $105,000 per day for 12 months.
Commenting on the VLCC market as a whole, MSI stated: “We are seeing exceptional levels of earnings, asset prices, orders and S&P activity in the VLCC sector.”
57% Surge in VLCCs – Rally in the tanker market
MSI cites a series of factors affecting the large tanker sector, including the accumulation of floating storage and Sinokor’s aggressive moves to acquire and control VLCC capacity, which is estimated to control 24% of the spot trading fleet.
“Sinokor is said to already have its VLCC capacity, in order to further increase prices.” The pressure on the market is exacerbated by the percentage of the VLCC fleet that has either been sanctioned or is part of the dark fleet.
“Adding to the frenzied market conditions is the US military buildup around Iran, alongside continued high levels of oil on water and floating storage,” MSI said.
Breakwave Advisors noted that there has been no structural shift in the market to justify the speed and rise in freight markets. “Instead, the dominant factor remains geopolitical risk, particularly the ongoing tensions around the Strait of Hormuz, where, even in the absence of physical disruption, the risk of restricted passage through this critical chokepoint has pushed charterers to secure capacity earlier,” its bi-weekly report commented.
These market conditions are leading to new ship orders and on February 23, MSI stated that 57 VLCCs had been ordered, nearly the total number of contracts signed in all of 2025.
It is worth mentioning that the VLCC market had been down for several years, with Aframax, MR and Suez Max taking the lead, mainly due to the war in Ukraine. What is certain is that shipowners who had invested and have VLCC tankers in their fleet are rubbing their hands.
