Tanker Sales Decline in 2024 Amid High Asset Prices

In 2024, the tanker sale and purchase market witnessed subdued activity, primarily due to elevated asset prices deterring investors. Data indicates that the number of tanker sales for vessels above 10,000 deadweight tonnage (dwt) stood at 337, marking a 34% decrease compared to previous years. This slowdown can be attributed to uncertainty surrounding freight rates and the reluctance of buyers to invest in high-priced second-hand tonnage.

Growing Demand for Fuel-Efficient and Scrubber-Fitted Tankers in 2024

Despite a 34% decline in sale and purchase activity in 2024, the market has shown a strong preference for modern, fuel-efficient vessels. Interest in scrubber-fitted tankers has also increased compared to the same period in 2023. Since early 2024, more than 30% of all tanker sales involved vessels equipped with exhaust gas abatement systems, compared to 18% in the first nine months of 2023.   

MR Tankers Led the Market in 2024

Medium Range (MR) units led the sale and purchase activity, accounting for approximately 33% of all sales until September 2024, followed by the Aframax/LR2 segment with 53 vessel sales. This trend underscores a growing preference for vessels capable of clean trading options, offering flexibility to transport both clean and dirty cargoes. By September 2024, five-year-old MR2s were valued at around $50 million, a 10% increase from June 2024, while 10-year-old MR2s saw an 8% rise to approximately $41 million.

Surge in Aframax Tanker Sales in 2025
The market for Aframax tankers—ships capable of carrying approximately 600,000 barrels of crude oil—has seen a significant surge following the US’s imposition of stringent sanctions on vessels trading with Russia. Since January 10, approximately 20 such vessels have been sold in Greece, with prices escalating by as much as 20%.

Concerns Over Buyer Transparency
This unexpected uptick in sales has sparked concerns regarding buyer transparency. In some cases, buyers have misled sellers about their true intentions, creating challenges for shipbrokers and shipowners, particularly in Greece, in ensuring adherence to regulations. A notable example is the 2008-built tanker Survetta, which was sold for over $30 million on January 3, renamed Ling Hong, and subsequently dispatched to Russia, despite prior assurances that it would not be involved in Russian trade.

Stricter Due Diligence in Shipbroker Practices
In response to these concerns, shipbrokers have tightened their due diligence processes. Buyers are now required to provide proof of identity, the source of their funding, and a detailed business history. These measures are aimed at preventing transactions that could potentially violate sanctions. If any deal raises suspicion, brokers have made it clear that they will walk away from the transaction, prioritizing compliance and integrity.

Summary of Tanker Sales Trends and Developments in 2024-2025