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As July 2025 draws to a close, the tanker market is navigating a period of transition

As July 2025 draws to a close, the tanker market is navigating a period of transition, with Timecharter Equivalents (TCEs) revealing both resilience and pockets of weakness across vessel segments. The VLCC currently earning around $28,078 per day, compared with $28,204 per day in the same period of 2024—just 0.4% year-on-year drop. The average VLCC TCE for January–July 2025 stands at $39,630 per day, 4% lower than the $41,233 per day recorded during the same period in 2024.

Suezmax tankers have also experienced a decline in earnings, though the drop has been more moderate. As of today, the Suezmax TCE stands at $35,656 per day, up from $28,555 per day recorded on August 1st, 2024—a 25% increase. The average so far in 2025 is $38,845 per day, compared to $44,347 per day over the same period last year.

In the Aframax/LR2 segment, the current TCE is $33,295 per day, 15% up from last year, while the 2025 year-to-date average stands at $31,725 per day, compared to $46,812 per day in 2024.

In the product tanker space, the MR Atlantic Basket is currently earning $26,573/day, down from $35,455/day on August 1, 2024 (a 25% year-on-year decline). The average for 2025 so far is $23,239/day, compared to $34,110/day during the same period in 2024. In contrast, the MR Pacific Basket has been the outlier, with TCE rising from $19,175/day to $24,356/day year-on-year—a 27% increase. However, the average for the MR Pacific Basket so far in 2025 is $21,637/day, compared to $38,863/day during the same period last year.

In the LR1 segment, July 2024 saw deals like a 76K DWT 2008-built Dalian tanker sold at $29.75 million, while one year later a 75K DWT 2010-built STX sold for USD 23.3 mills. For Crude Oil Tankers, in July 2024 a 105K DWT 2007-built Hyundai tanker sold for USD 38 mills, while in July 2025 a 105K DWT 2009 built Sumitomo was sold for USD 32.5 mills. Moving to the Suezmax segment, a 159K DWT 2005 built Daewoo was sold for USD 34.5 mills in July 2024 and one year later, the 151K DWT 2003 built HHI was sold for USD 19 mills. Finally, on the VLCC segment in July 2025, a 2004-built Universal vessel was sold for $41.5 mills, making VLCC the only segment that saw a price increase y-o-y as in late July 2024, a VLCC 2006 built Universal vessel was sold for about USD 40 mills.

These sale examples underscore the extent of market correction: every main tanker segment saw a significant price decline apart from the VLCC sector where asset prices moved slightly higher y-o-y. The shift reflects weaker fundamentals and diminished buyer sentiment across the tanker market, as evidenced by lower sale prices for vessels of similar size, age, and pedigree compared to a year ago.

S&P Activity:

Dry:

On the Capesize sector, Chinese buyers acquired the "Herun Zhejiang" - 181K/2017 build in SWS for USD 48 mills. The Scrubber fitted Post-Panamax "Cedric Oldendorff" - 95K/2011 Imabari found new owners for low USD 16 mills. The Kamsarmax "Aquavita Trader" - 81K/2016 Jiangsu New Hantong changed hands for USD 22 mills, while the Panamax "Gorgoypikoos" - 76K/2005 Tsuneishi was sold for low USD 9 mills to Chinese buyers. 4 x Ultramax vessels, the "Belinda" - 63K/2016 Jiangsu Hantong, the "Belatlantic" - 63K/2016 Jiangsu Hantong, the "Belmont" - 63K/2016 Jiangsu Hantong and the "Belsouth" - 63K/2015 Jiangsu Hantong were sold for USD 84 mills enbloc. The Supramax "Ivy Blue"- 56K/2011 IHI changed hands for mid USD 15 mills. Finally, the OHBS Handysize "Evangelia L" - 38K/2015 Naikai Zosen was sold for region USD 20 mills to Turkish buyers.

Tanker:

The tanker S&P activity was subdued this week with only 3 sales to report all on the MR2 sector. The "Nord Olympia" -50K/2018 Onomichi was sold for region USD 37 mills. The "Lakshmi" - 50K/2009 SLS was sold for USD 17.5 mills, while the one-year-older "Seaways Mia" - 50K/2008 HMD changed hands for USD 16.5 mills.

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