Influenced by tight crude oil transportation out of the Middle East, prices in the very large crude carrier (VLCC) market have climbed sharply, according to a September 27 report by the UK's Financial Times.

Some second-hand VLCCs around ten years old have changed hands at more than $150 million, above the current average construction cost of about $135 million for a new vessel, producing an inverted market in which used ships cost more than new ones.

Buyers are willing to pay this hefty premium simply to lock in tonnage that can be put into service immediately.

The core reason behind this price inversion is the difference in delivery times between new and old ships.

Ordering a new vessel means waiting for it to be built and delivered, whereas buying a second-hand ship on the spot market allows it to be deployed on a route at once, take on cargo orders and earn high freight rates.

The report said that for VLCCs able to carry about 2 million barrels of crude, daily freight rates on the Middle East-to-East Asia route have climbed to roughly $1.2 million.

Shipbrokers say some deals that once took weeks to complete now take only days, and the constraint that vessel age places on pricing has clearly weakened.

Middle Eastern national oil companies are important buyers in this round of ship purchasing.

Rising navigation risks in the Strait of Hormuz are prompting these companies to expand their own fleets and reduce reliance on third-party shipowners to safeguard their domestic crude exports.

Shipping consultancy Drewry said Abu Dhabi National Oil Company of the UAE has bought at least six VLCCs in the past two months.

However, some industry analysts caution that current high tanker prices are mainly supported by disrupted shipping and surging freight rates.

Many shipowners expect that once tensions in the Middle East ease and navigation through the Strait of Hormuz returns to normal, both the lofty freight rates and second-hand tanker prices could fall sharply.