The average charter rate for VLCCs (Very Large Crude Carriers) in the global market has increased from $198,000 per day in July to $722,946 per day on September 18, 2023. This significant increase, especially considering that the charter rate in mid-September 2025 was around $79,700 per day, is attributed to geopolitical developments and their impact on oil supply and demand.
Reasons for the Increase in Charter Rates
Geopolitical developments in the Middle East, particularly tensions surrounding Iran and disruptions related to the Strait of Hormuz, have increased the risk of war and uncertainty in normal trading patterns. These conditions have led to reduced access to vessels and increased demand for alternative oil resources. Additionally, changes in routes and the need for longer voyages have increased the demand for 'ton-miles' and put more pressure on revenues.
Read more: Qatar Increases Liquefied Gas Tanker Traffic from the Strait of Hormuz
Increase in Asset Values
The value of VLCC assets has also changed in line with these developments. Between July 10 and September 18, the value of five-year-old VLCCs has risen from approximately $145 million to $172 million (an increase of 18.6%). Additionally, the value of ten-year-old tankers has increased from $115 million to $152 million (an increase of 32%). Similarly, the value of fifteen-year-old tankers has reached $135 million (an increase of 61%).
In total, 103 VLCC sales have been recorded between January and September 14, with activities in this area fluctuating throughout the year. January and February were very active with 38 and 27 sales respectively, but this activity significantly decreased in the spring. In the summer, the trend improved with 10 sales in August and 9 more by mid-September.
The average age of the vessels sold in September has reached about 18 years, up from 13.6 years in August. This trend indicates significant changes in the market. For example, the DHT EUROPE tanker, built in 2007, was sold in January for approximately $51 million, while the RAIN CUBIC tanker, built in 2008, was sold in September for about $90 million.
Read more: Russia Begins Oil Exports from the Large Vostok Project · Stability of Freight Rates in the Fujairah Oil Field in Week 39 of 2026
