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The tanker sales market experienced a noticeable decline

The tanker sales market experienced a noticeable decline in overall activity during Q1 2025, with total transactions reducing to 97 vessels compared to 126 vessels sold in Q1 2024. This decline may indicate broader market caution driven by regulatory changes and global economic factors. The MR2 tanker category saw the most pronounced decrease, with sales falling significantly from 36 vessels in Q1 2024 to only 15 vessels in Q1 2025. Despite the general downturn, some vessel categories experienced heightened activity. Aframax/LR2 tanker sales increased modestly from 23 vessels in Q1 2024 to 27 vessels in Q1 2025. Additionally, the Suezmax segment doubled in transactions, rising from 6 vessels to 12 vessels but this doesn't necessarily highlight a market trend as four out of the 12 were bought by the same buyer. Conversely, transactions for VLCC/ULCC vessels declined from 18 to 12, indicating cautiousness around the largest, most operationally complex ships.

On the buyers' nationality side, China, traditionally a dominant buyer, reduced its activity significantly, dropping from 23 tanker vessels in Q1 2024 to just 12 in Q1 2025. Similarly, South Korea saw a steep decline from 13 to only 1 vessel. In contrast, Greece maintained strong activity with 11 purchases, only slightly down from 16 previously, sustaining its position as a key player. Countries like the United States, UAE, and Turkey demonstrated steadier performance with marginal variations, while several others—including India, Norway, and Vietnam—entered or re-entered the market with limited transactions. Overall, the data points to a more fragmented and opaque market, with a growing portion of transactions occurring under undisclosed or less traditional countries. From the sellers' perspective, Greece remained the leading nationality, though its activity slightly dropped from 26 to 23 vessels. Japanese sellers increased their market participation from 3 vessels to 6 vessels, potentially indicating shifts in fleet management strategies among Japanese shipowners. However, South Korea and the United States notably reduced their vessel-selling activities compared to the previous year.

Tanker sales declined across most age groups in Q1 2025 compared to Q1 2024, with total transactions falling from 126 to 97. The most significant drops were seen in the 6–10 year-old and 11–15 year-old segments, which fell from 21 to 8 and from 35 to 18 sales respectively—indicating reduced interest in relatively newer secondhand tonnage. Sales of vessels aged 0–5 years also declined by over 50%. Interestingly, the 16–20 year-old segment remained steady at 47 ships sold, suggesting continued appetite for older, mid-life vessels. Additionally, demand for tankers over 21 years old nearly doubled, rising from 10 to 18. Regarding the country of built, South Korea remained dominant, though vessel sales dropped substantially from 71 in Q1 2024 to 47 in Q1 2025. Similarly, China-built tanker transactions saw a notable decline from 31 vessels in Q1 2024 to 19 vessels in Q1 2025. This reduction may have been influenced by the USTR's proposal to impose a port-call tax specifically targeting Chinese-built ships, making these vessels less attractive for buyers who frequently call at U.S. ports. Japan-built tanker transactions increased slightly from 18 to 25 vessels.

In summary, Q1 2025 reflects a cautious and strategic market shift, reflecting reactions to geopolitical and regulatory developments such as potential taxes on certain shipbuilding origins.

S&P activity:

Dry:

The USTR proposal seems to have affected S&P activity y-t-d, as weekly data reveals a decrease in the volume of transactions involving Chinese-built vessels. So far this year, a total of 220 bulk carrier vessels (>= 10,000 DWT) have found new ownership. Of these, 56% were Japanese vessels, while the share of Chinese-built vessels was 32%, a significant reduction compared to the same period in 2024 when 42% of total bulk carrier sales were Chinese-built vessels. This week, Chinese buyers acquired the Capesize "China Progress" - 174K/2006 SWS for USD 17.5 mills. On the Kamsarmax sector, the "Shun Fu Da" - 82K/2006 Tsuneishi was sold for USD 11.4 mills. 2x Ultramax vessels, the "Maplegate" - 63K/2019 Iwagi and the "Oakgate" - 60K/2018 Oshima were sold enbloc to Indonesian buyers for USD 62-63 mills basis buyer's being awarded a tender. On the same sector, the "Amis Wisdom III" - 62K/2011 Shin Kasado was sold for USD 17.5 mills to Chinese buyers, while the Supramax "Equinox Seas" - 52K/2003 Brodosplit was also sold to Chinese buyers for USD 8.5 mills. Finally, the Handysize "IVS Magpie"- 28K/2011 Imabari changed hands for USD 10.2 mills.

Tanker:

Mirroring the trend in dry bulk S&P activity, fewer Chinese-built vessels have changed hands in the tanker sector this year. Of the 103 vessels (>= 10,000 DWT) sold since the start of the year, South Korean-built vessels account for the largest share at 52%. Chinese-built and Japanese-built vessels each hold a 22% share, a significant drop from the 42% share held by Chinese-built vessels during the corresponding period of 2024. This week, the VLCC "Eurohope" - 307K/2007 Daewoo was sold for USD 46.25 mills to Chinese buyers. The Aframax "P. Sophia"- 105K/2009 HHI changed hands for USD 36.05 mills basis delivery within maximum of 120 days. On the MR2 sector, the "Dai An" - 51K/2007 Shin Kurushima was sold to Vietnamese buyers for USD 14.75 mills basis extremely prompt delivery with DD immediately due. Last but not least, the "Songa Kari" - 13K/2008 21St Century found new owners for USD11 mills.

Xclusiv Shipbrokers Inc.