VLCC freight rates rise more than 800% in a year, lifting vessel values

Tehran, Iran. Freight rates for very large crude carriers (VLCCs) have risen by more than 800% over the past year, pushing up second-hand vessel values, according to an analysis by Xclusiv Shipbrokers. The rise has accelerated since late July amid disruption around Iran and the Strait of Hormuz.

Freight rates climb

According to the Baltic Exchange, the average VLCC market stood at around $198,000 per day in July, rose to $272,000 in August and reached nearly $449,000 per day in the first half of September.

By September 18, the relevant index had reached around $722,946 per day, compared with $79,700 per day in mid-September 2025. That represents a 807.1% increase in 12 months, significantly changing the economics for shipowners.

Disruption reduces vessel availability

Heightened tensions around Iran and disruption to navigation through the Strait of Hormuz have increased war risk and reduced the number of vessels effectively available for commercial employment. Changing routes, longer voyages and the need to source crude oil from alternative regions have also increased demand measured in tonne-miles.

High earnings and reduced effective vessel availability have strengthened VLCC values. The shift has also contributed to inflationary pressures internationally, with implications for energy-intensive industrial operations and the wider supply chain.