Chinese buyers are driving a sharp rise in demand for vintage very large crude carriers (VLCCs).
This trend reflects structural shifts in global oil flows since Russia’s invasion of Ukraine, where sanctions and the emergence of a shadow “dark fleet” have created premiums for older vessels inaccessible to compliant modern tonnage, according to Veson Nautical’s latest Market Insight report.
The report, titled ‘The Changing Face of Asian S&P Behaviour,’ notes that values for 25-year-old VLCCs have surged 31.6 per cent year-to-date (YTD), compared with just 0.5 per cent growth for five-year-old units.
Additionally, Veson Nautical emphasised that 81 per cent of Chinese buyers’ vessel purchases over the past five years involved ships older than 15 years.
This inversion highlights how sanctions and shifting trade flows are driving premiums for older tonnage, even as newer vessels trade at relatively stable levels.
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Matt Freeman, Senior Vice President of Values and Analytics at Veson Nautical, said: “Vintage VLCCs are now trading at levels that would have been unthinkable just a few years ago.
“The July sale of the Eon (ex. Atlantic Loyalty) for $44 million is nearly double the fixed aged term median. This underlines how demand linked to sanctioned trades is reshaping asset values and overturning conventional market logic.”
The report explains that China’s demand for older VLCCs stems from structural and geopolitical forces.
Western sanctions on Russian crude have fractured the market into parallel systems, with a “dark fleet” of older tankers averaging 18.1 years in age, compared with 10.4 years for the compliant fleet.
These older vessels operate outside mainstream compliance regimes and can command premiums over younger compliant units, as the pool of vessels able to assume regulatory risk is limited.
Freeman added: “Sanctions have created a parallel trading system where older VLCCs can command earnings that exceed younger vessels, and financing advantages allow Chinese owners to move quickly and capitalise on these opportunities. Added to this, the surge in Russian crude flowing into Asia has created a steady stream of demand that makes these vintage assets more valuable than ever.”
The report highlights varied strategies across Asia: Chinese buyers dominate vintage VLCC acquisitions; South Korean owners focus on countercyclical purchases of mid-life vessels; and Japanese buyers largely avoid older VLCCs, favouring younger MR2s deemed more versatile assets.
These differences reflect diverse financing structures, regulatory constraints, and strategic priorities.
