Buying a second-hand tanker: the questions that matter

Age decides who will charter it

Many oil majors and terminals apply age limits or extra screening to older tankers, commonly from around fifteen years and more strictly beyond twenty. A cheaper, older vessel can be harder to employ on the best charters.

Know which charterers the vessel needs to work for before agreeing a price.

Time the purchase against the survey cycle

Class special surveys fall due every five years, and the surveys at fifteen and twenty years can be costly. Buying just before a special survey means paying for it. Buying just after means the previous owner has.

Ask for the class records and the planned dry-dock scope, and price accordingly.

Read the inspection and vetting record

Port state control inspections, class records and oil major vetting reports show how the vessel has been run. Repeated deficiencies say as much about the maintenance culture as about the steel. A physical inspection by an independent surveyor is still essential.

Understand the carbon rules

Under the International Maritime Organization's carbon intensity rules, ships receive an annual rating. A poor rating can require a corrective plan, and charterers increasingly prefer better-rated tonnage. Ships trading to Europe also now face emissions trading costs.

Check the vessel's current rating and what it would take to improve it, from slower steaming to energy-saving upgrades.

Check the history behind the ship

Review previous owners, flags, names and trading patterns. Sanctions exposure in a vessel's past can follow it into your ownership and make banks, insurers and charterers unwilling to deal with it.

Get the contract right

Most second-hand sales use a standard form memorandum of agreement. The details that matter are the inspection rights, the delivery condition and place, the deposit arrangements, and what happens if a class item is found before delivery.