Why used ships cost more than new ones — and what it says about shipping demand

Secondhand vessel prices continue to exceed those of newly built ships — a phenomenon once seen only during past shipbuilding supercycles — reflecting what analysts say is a broad surge in global shipping demand.

According to Clarksons Research, the global shipbuilding and shipping market analysis firm, the secondhand vessel price index stood at 212.39 as of June 26, up 0.88 points from the previous week. A total of 1,217 secondhand vessels changed hands through June 26 this year, a roughly 36 percent increase from 893 transactions in the same period last year.

The price surge has been particularly sharp for oil tankers. Among tanker types, the resale price of an Aframax-class vessel — sold before delivery from the shipyard — reached $96 million, jumping $3.5 million in a single week. The upward trend is even more striking when viewed against recent years.

Aframax resale prices had slipped from $83 million in 2023 to $80 million in 2025, but this year they have surged to within reach of the $100 million mark. The secondhand price for a five-year-old Aframax tanker also jumped $5 million from the previous week to $85 million.

Amid the red-hot secondhand market, the newbuild segment is also holding firm. The newbuild vessel price index rose 0.27 points from the previous week to 185.15 as of June 26. Cumulative newbuild orders this year reached 1,444 vessels, an explosive 125.6 percent increase from 640 vessels in the same period last year.

Gains in the newbuild market were broadly distributed across vessel types, though price movements for some — particularly Aframax-class tankers — were more modest than in the secondhand market. Medium-range tankers, Panamax and Handymax dry bulk carriers, and Handysize vessels each rose $500,000 from the previous week. Among gas carriers, 91,000-cubic-meter liquefied petroleum gas carriers also gained $500,000.

Industry officials point to two main drivers behind the secondhand price surge: heightened geopolitical risk and a shortage of vessels available for immediate deployment. The prolonged Russia-Ukraine war and recent Middle East conflicts have forced ships onto longer detour routes, effectively increasing sailing distances and stoking demand. Order backlogs at South Korean and Chinese shipyards have swelled to the point where vessel deliveries are now pushed to 2028–2029, with some slots extending beyond 2030.

Even shipowners who place new orders today cannot get vessels into service anytime soon, as shipyard docks are already packed with years' worth of work. That has redirected demand toward secondhand ships that can be deployed immediately, pushing used-vessel prices above newbuild prices. Some in the industry expect the strength in the secondhand market to exert further upward pressure on newbuild prices as well.