Suezmax tanker sales have increased by 35% this year due to high demand for VLCCs (Very Large Crude Carriers). The average age of the sold vessels is reported to be 15 years. In this context, Greece has been the largest buyer with 21% of the purchases, followed by the United Arab Emirates and China with 15% and 8%, respectively.
Sales and Purchase Status of Tankers
Greece has also been active on the selling side, accounting for 33% of total sales. In this regard, Dynacom has sold nine Suezmax tankers this year. China with 9% and Belgium with 6% rank next in sales, as CMB.Tech and Exmar have sold a total of eight vessels.
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Notable Sales and Reasons for Increased Demand
Among recent sales, the Suezmax tanker named Achilleas with a capacity of 158,400 DWT, built by Hyundai Heavy Industries in June 2010, was sold for $98 million. Additionally, the Maran Poseidon tanker with a capacity of 158,300 DWT, built in January 2010, was sold for $98.5 million.
The increase in the value of VLCC tankers this year has indirectly boosted demand for Suezmax tankers. As attention shifts from VLCCs to Suezmax tankers, demand and revenues have significantly increased, and the price gap between these two types of vessels has narrowed. Older Suezmax tankers have experienced the most price increases, with a 15-year-old Suezmax tanker with a capacity of 160,000 DWT seeing a price increase of 134.58% since the beginning of the year.
Time charter rates for one year have also increased by 301% compared to last year, rising from $40,151 per day to $161,054 per day. These increases are due to disruptions in trade patterns and rising demand for Suezmax tankers.
Moreover, Suezmax tankers are considered an attractive option for transporting crude oil between the Middle East, Mediterranean, and Europe due to their ability to fully load while passing through the Suez Canal. These features allow owners and charterers to operate with greater flexibility in the market and become a more cost-effective option compared to VLCCs.
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