Amid tight crude oil shipping capacity out of the Middle East, prices in the very large crude carrier (VLCC) market have climbed sharply.

Some secondhand VLCCs around ten years old have changed hands for more than US$150 million, exceeding the current average newbuild cost of about US$135 million and producing an inverted price structure in which used vessels cost more than new ones. Buyers are willing to pay such a hefty premium simply to secure spot tonnage that can be deployed immediately.

The core reason behind this inversion is the difference in delivery timelines between new and used vessels. Ordering a new ship means waiting for construction and delivery, whereas buying a secondhand vessel already in the water allows it to enter service at once, take on cargo orders and capture high freight rates.