$200m VLCC deal shatters tanker market as rates soar beyond $800,000 daily
Dubai’s Onex DMCC pays $20.6m premium for scrubber-fitted 306,000 dwt VLCC Promise, built in China this year
A high-profile tanker transaction has confirmed the extraordinary conditions shaping the global shipping market. Dubai-based trading firm Onex DMCC has been linked to the purchase of a nearly new very large crude carrier (VLCC) for $200 million, a deal that underscores the premium buyers are willing to pay for immediate vessel availability.
The ship in question, originally named Pinios, was built earlier this year at China’s Hengli Heavy Industries. With a capacity of 306,000 deadweight tons, the vessel was acquired from Greek owner George Procopiou’s Dynacom Tankers. The sale price exceeds the independent valuation of $179.4 million provided by VesselsValue, reflecting a premium of over $20 million for the ship’s readiness to operate.
Renamed Promise following its January 30 naming ceremony, the vessel is equipped with a scrubber system and was the second in a series of VLCCs constructed by the Chinese shipyard for Dynacom. It has since been positioned in the Gulf of Oman, currently the most active region for crude oil transport.
Brent Crude
Record-Breaking VLCC Sale Highlights Tanker Market Surge
The decision to sell comes as tanker earnings and asset values reach historic highs. The Baltic Exchange’s benchmark route for VLCCs traveling from the Middle East Gulf to China, known as TD3C, has surpassed a theoretical $800,000 per day this week. However, due to ongoing disruptions in the Strait of Hormuz, direct loadings from the Gulf remain limited.
As a result, the Gulf of Oman has become the new focal point for VLCC operations. The Baltic Exchange introduced the TD34 route in March to account for this shift, which involves ship-to-ship transfers of crude. This alternative route has seen rates climb above $450,000 per day, reflecting the heightened demand for available tonnage.
Market Dynamics Drive Unprecedented Rates
Analysts suggest the market’s strength is far from peaking. Morgan Stanley’s recent report, Tanker & Fuel: A Golden Age, highlights that freight rates have tripled this year and now stand at 4.7 times above mid-cycle levels. The bank forecasts an additional 20-30% increase in two-year VLCC time charter rates, citing long-term supply constraints.
With 6% of the VLCC fleet already over 25 years old and another 10% nearing retirement age, the effective supply of vessels is expected to remain tight beyond 2027. Compounding this is the three-to-four-year wait for newbuild orders, which has driven up the value of existing ships. Five-year-old VLCCs are now being assessed at prices higher than the cost of ordering a new vessel, a rare inversion that underscores the current market’s intensity.
The $200 million sale of the Promise may signal further price increases as traders and owners navigate what Morgan Stanley describes as a “golden age” for tankers. For firms like Onex DMCC, securing a vessel now—despite the premium—appears to be a strategic move in a market where delays could prove even more costly.
Sign up free to ask CAMAL AI for a summary, the key points or anything else about this story.
Related stories
CAMAL AI
Financial Ports Newsletter
The maritime economy, every morning
Ports, shipping and freight markets in one short email. Free.
