Communicator

The burgeoning demand for maritime transport has propelled tanker prices worldwide to unprecedented levels.

As of spring 2024, the cost of sea tankers, both new and used, has skyrocketed to historic highs, marking a pinnacle not witnessed in 15 years, as reported by Drewry.

The surge in tanker prices can be attributed to soaring freight rates coupled with limited availability of vessels and shipyards.

The uptrend in newbuilding costs commenced in 2021, spurred by a surge in container orders, which subsequently reduced order slots at shipyards. In 2022, prices for used tankers surged following shifts in global logistics.

Various factors have fueled demand for medium-sized tankers, including anti-Russian sanctions, while the demand for large vessels surged in 2023 with the expansion of long-haul trade between Europe and Asia and the recovery of consumption in China.

Consequently, experts assert that the current demand for tankers has resulted in older vessels fetching prices well above their original costs.

For instance, the cost of a large tanker constructed five years ago surged from $96 million in 2019 to approximately $110-113 million in Q1 2024, marking a staggering 60% increase over the past five years, with newbuilds following suit in the upward trajectory.

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