The VLCC market is red hot driven by combination of US – Iran tensions and Sinokor’s control of nearly 25% of the spot market.This week has seen spot market fixtures crossing the $200,000 per day level, while for time charters have surpassed $100,000 per day for a one year, as Seatrade Maritime News reported on 24 February.In the spot market the 2015-built DHT Jaguar was reported fixed at $208,000 per day to Bahri Oil Transportation with the 2023-built Maran Dione also reported fixed to Bahri at $199,000 per day, according to Tankers International.
Meanwhile time charter market has crossed the $100,000 per day for a one-year period which Maritime Strategies International (MSI) described as “unprecedented levels over a sustained period” in its latest Horizon monthly tanker report. DHT Holdings reported it had fixed the 2011-built DHT Redwood fixed at $105,000 per day for 12 months.
Commenting on the VLCC market as a whole MSI said, “We are seeing exceptional levels of earnings, assets prices, ordering, and S&P activity in the VLCC sector.”
MSI cites a number of factors driving the large tanker sector including a build up of floating storage and Sinokor’s aggressive moves to acquire and control VLCC tonnage, which has been estimated to control 24% of the spot trading fleet. “Sinokor is reportedly already withholding its VLCC tonnage in order to push rates up further.” The squeeze on the market is exacerbated by the proportion of the VLCC fleet that is either sanctioned or part of the dark fleet.
“Adding to frantic market conditions has been US military build-up around Iran, alongside continued high levels of oil on the water and floating storage,” MSI said.
Breakwave Advisors noted there had been no structural shift in the market to justify the speed and spike in freight markets. “Instead, the dominant driver remains geopolitical risk, particularly ongoing tensions surrounding the Strait of Hormuz, where, even in the absence of physical disruption, the risk of restricted transit through this critical chokepoint has prompted charterers to secure tonnage earlier,” its bi-weekly report commented.
The booming market conditions are also driving newbuilding orders and as of 23 February MSI said that 57 VLCCs had been ordered, close to the number contracted in the whole of 2025.