Vantage flags newbuild ordering risk as tanker rates trade far above 10-year averages
VNTG•Vantage warns on newbuild ordering risk
Vantage Corp. warned tanker owners risk over-ordering newbuilds as conflict-driven spot rates surge far above long-run averages.
Rates and asset values have moved sharply higher
- July VLCC spot earnings hit $223,340/day, about 6.4x the disclosed 9-10 year average near $35,000/day.
- VLCC newbuild resale values rose 5% from $160 million in April to $168 million in August, signaling asset prices reflect peak conditions.
Secondhand ships framed as a lower-risk alternative
Secondhand ships were framed as a lower-cycle-risk alternative, citing a 2016-built Suezmax sold for $85 million versus $110 million for a new resale.
Financing model points to weaker economics at average rates
Modeling with 75% loan-to-value financing shows uncovered newbuild economics deteriorate at 10-year average rates, with some deals unable to service debt.
