One-Third of VLCC Fleet Controlled, Driving Earnings Above $120K/Day
Sinokor and an MSC-linked consortium now control roughly 120 VLCCs, representing about one-third of the available spot fleet. This consolidation has driven benchmark VLCC earnings above $120,000 per day and tightened global tanker availability, boosting freight costs.
1. Aggressive Fleet Acquisition
Sinokor’s aggressive chartering and purchases have amassed roughly 120 very-large crude carriers, around one-third of the spot VLCC fleet. These vessels include both purchases and charters focused on ships older than 10 years.
2. Freight Rate Surge
The consolidation has driven benchmark VLCC earnings above $120,000 per day, quadrupling rates over the past month and squeezing second-hand vessel values and time-charter rates upward.
3. Comments from SFL Corp. CEO
On a recent analyst call, SFL Corp. CEO Ole Hjertaker highlighted that this consolidation represents a fundamental shift in fleet ownership, pressuring timely vessel availability and altering spot market pricing dynamics.
4. Market Implications
Industry executives warn that the tightened supply could sustain elevated freight costs, enhance shipowners’ negotiating power on charters and second-hand sales, and reshape competitive dynamics in the tanker market.