By Elizabeth Low (Bloomberg) Russia’s invasion of Ukraine has supercharged one segment of the shipping market, with soaring freight rates prompting companies to rush to purchase rather than rent vessels.
Commodity markets, and the shipping trade that’s vital for transporting materials around the globe, have been upended Europe’s worst military crisis since World War II. While freight rates have recently eased from their highs, ship owners are still likely to fetch healthy earnings for the rest of the year, according to Anoop Singh, head of tanker research at Braemar ACM Shipbroking.
With demand outstripping availability, buyers have been willing to bid significantly higher, shipbrokers told Bloomberg. Given a new tanker takes up to three years to order, companies hoping to cash in on the rally are mostly limited to existing vessels, they said.
Oil Tanker demand chart by Bloomberg, July 2022
In all, 184 clean tankers worth $3.79 billion were sold in the seven months to July, according to VesselsValue data. That’s the highest value and number of transactions in at least five years.
Among recent deals, a 14-year-old, Korean-built medium-range tanker changed hands for $19.3 million last week, according to shipbrokers who asked not to be identified. That’s about $5 million more than the price of a similar vessel sold in April.
A six-year-old tanker, Largo Sun, sold for $35 million this month, according to Olivia Watkins, head cargo analyst at VesselsValue, who said product tankers were the most-traded ships in July. Prices for vessels of about that age have risen by more than 20%.
The average value of a 15-year-old long-range tanker — a commonly traded age for a second-hand vessel — surged nearly 60% this year, while that of a similarly aged medium-range tanker gained more than 40%, according to the company’s data.
Fuel tanker rates have surged as Western buyers sought alternatives to Russian products, taking cargoes from more-distant markets. That’s meant longer voyages, tying up vessel availability.
“Demand may not have to do too much for healthy rates to sustain for a long period,” said Braemar’s Singh. Earnings are likely to remain healthy for most shipping firms this half, he said.
NYK has successfully completed its first-ever ship-to-ship (STS) transfer of liquefied ammonia, moving approximately 23,000 tons from the carrier Berlian Ekuator to the Eco Enchanted off the coast of Ceuta,...
The maritime world marks World Maritime Day today, September 25, 2025, with the theme “Our Ocean, Our Obligation, Our Opportunity” — a call to action that comes at a critical...
Sempra said on Tuesday it would sell a 45% stake in its infrastructure unit for $10 billion, and has approved a $14 billion expansion of Port Arthur LNG project in Texas, sending the utility's shares to their highest in nearly seven months.
September 23, 2025
Total Views: 738
Get The Industry’s Go-To News
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
— just like 107,643 professionals
Secure Your Spot
on the gCaptain Crew
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
— trusted by our 107,643 members
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.