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Tanker Owners Bank $400m a Day Above Budget as VLCC Rates Break $1.3m

Tanker owners are clearing $400m a day above 2026 budgets, with VLCCs on MEG–China above $1.3m a day and 15-year-old ships outvaluing newbuildings.

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Amara Osei
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Tanker earnings defy all historical comparisons
Tanker earnings defy all historical comparisonsGrownDiamond / pixabay

Key points05

  • Independent tanker owners are earning about $400m a day above 2026 budget expectations, Hartland estimates.
  • VLCC earnings on the Middle East Gulf–China route have breached $1.3m a day, per Veson Nautical.
  • 15-year-old VLCC values jumped 196% year-on-year to $163.2m, exceeding newbuilding prices for the first time.
  • Middle Eastern buyers purchased 34 tankers between July 1 and October 5, including 19 VLCCs versus one a year earlier.
  • Only 20 of 319 VLCCs on order deliver across Q4 2026 and Q1 2027, Hartland says.

Independent tanker owners are earning roughly $400m a day above what they budgeted for 2026 — a windfall that, sustained for a full year, would produce $146bn and nearly match the container shipping industry's pandemic-era record of $150bn in 2022.

That's the headline calculation from broker Hartland's latest weekly report, which covers independent owners of VLCCs, suezmaxes and aframaxes/LR2s. One month at this pace means about $12bn in extra profit; a quarter, $36bn.

The numbers assume just under half the combined tanker fleet is earning today's rates. Sanctioned vessels and tonnage controlled by state shipping companies, oil majors and commodity traders sit outside the estimate.

How hot are spot rates right now?

Average daily earnings over the past month reached $643,000 for VLCCs, $457,000 for suezmaxes and $256,000 for aframaxes, per Hartland. VLCCs on the Middle East Gulf–China lane have pushed through $1.3m a day, according to Veson Nautical.

For a shipowner, that's roughly $9m a week on a single VLCC voyage leg. For charterers and refiners, it's a freight bill that now materially moves delivered crude costs.

What does this do to asset values?

Plenty. At the end of September, a 15-year-old VLCC was valued above a newbuilding for the first time on record, Veson reports. Values for ships of that age have surged 196% year-on-year to $163.2m.

Five-year-old VLCCs now fetch $218m — a record 55% premium over a newbuilding. Poten & Partners puts the premium for prompt resale tonnage even higher, assessing an immediately available VLCC at $235m against $130m for one delivering in 2029.

Buyers, largely Middle Eastern interests, are paying it. Veson recorded 34 tanker purchases by regional buyers between July 1 and October 5, up from 21 a year earlier. Nineteen of those were VLCCs, against a single VLCC purchase in the prior period.

Poten's verdict on the eye-watering prices: worth it, at current rates. "The market shows eye-popping numbers for secondhand tonnage, but based on current rates, it does not take long to earn back the premium that you have to pay (if somebody is willing to sell you a ship)," the broker stated in its latest weekly report.

The caveat sits inside the parenthesis. Sellers with ships earning $1m a day aren't queuing up.

What about the orderbook?

The 319 VLCCs on order have drawn plenty of bearish commentary. Hartland points out the threat isn't immediate: just 20 of those ships are scheduled for delivery across the six months covering Q4 2026 and Q1 2027.

Supply, in other words, stays tight through at least the first half of next year. Anyone waiting for the orderbook to rescue charterers may want to settle in.

For shipowners, the arithmetic is simple and extraordinary. For cargo interests, the question is how long refiners and traders keep absorbing six-figure daily freight before demand destruction or new tonnage finally bends the curve — and on current delivery schedules, that's a 2027 conversation.

Source: Splash247

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Amara Osei

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Staff writer covering regulation, policy and their impact on Ocean and air freight, container shipping at Waybill Wire.

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