A niche but critical segment of the oil market is being profoundly shaken by a massive wager placed by a South Korean tycoon. With backing from one of the industry's wealthiest figures, this individual has secured a substantial portion of the tanker market.
According to estimates from several senior industry executives, over the past one to two months, South Korea's Sinokor has moved swiftly, acquiring or chartering a large number of vessels and now controls approximately 120 Very Large Crude Carriers (VLCCs). Some market veterans note that the scale of this fleet accumulation by the company, led by shipowner Jung Ga-hyun, is unprecedented in their experience.
However, the Seoul-based shipping firm is not acting alone. At least two major shipowners who recently negotiated vessel sales with Sinokor discovered that the ultimate buyer was an entity linked to Gianluigi Aponte. Aponte is the founder of a vast shipping empire, which includes Studio City International Holdings Ltd (MSC). The precise nature of the relationship between the two companies remains unclear, as does the extent of MSC's involvement in Sinokor's other transactions.
This account is based on interviews with over a dozen shipping brokers, shipowners, and executives, most of whom requested anonymity due to the sensitive nature of the information. The majority of Sinokor's purchases and charter agreements have also been documented in industry brokerage reports. Multiple shipowners added that the partnership is still actively seeking to acquire more vessels.
A spokesperson for MSC declined to comment. Sinokor did not respond to repeated emails and phone calls seeking comment.
Even by the standards of the opaque shipping industry, these maneuvers are highly conspicuous. Most of the world's oil-carrying tankers are committed to long-term charters or fixed routes, while an increasing number of vessels are under sanctions for involvement in illicit trade of Russian and Iranian oil. With global oil trade volumes surging, the pool of available ships for charter is shrinking.
Traders report that Sinokor's aggressive acquisitions have sparked panic in the market, significantly driving up freight rates. Anxious charterers, fearing that concentrated ownership will lead to further rate increases, are rushing to secure space. Data from Clarksons Research Services, part of the world's largest shipbroker, shows that crude tanker earnings are experiencing their strongest start to a year in over three decades. Meanwhile, traders indicate that the turmoil in shipping is depressing spot crude prices in some regions.
Ole Hjertaker, CEO of shipping company SFL Corp, stated on an analyst call last week, "There is one party, or a group of parties acting in concert, that effectively controls about a third of the globally tradable fleet of VLCCs." He did not name the specific participants.
The tanker market is a niche but vital link in global oil trade. It has long been dominated by shipowners from a handful of maritime powers like Greece and Norway, as well as major oil nations such as Saudi Arabia and China.
Sinokor, originally a container shipping company with a relatively low profile, has previously engaged in large-scale chartering that tightened market capacity. However, at least one market participant noted that the scale of this recent trading spree far exceeds any previous activity.
For Aponte, these acquisitions represent a further expansion of his vast global empire. The billionaire was a key investor last year in a consortium seeking to acquire a significant stake in two ports along the Panama Canal. In 2022, after acquiring hundreds of ships, MSC surpassed Maersk to become the world's largest container shipping line—a title the Danish company had held for decades.
If this hoarded global fleet of available tankers—estimated at roughly 15% of the non-sanctioned fleet and between a quarter and a third of non-long-term committed VLCCs—is not quickly released into the charter market, it will grant the owners significant pricing power.
"A Fundamental Shift"
In recent months, a large volume of crude oil has entered the global market, causing demand for non-sanctioned tankers to soar. Simultaneously, a significant portion of the fleet is subject to Western sanctions. These twin factors have pushed vessel utilization rates higher, boosting earnings and creating a risk of further sharp increases.
Due to the mix of acquisitions, charters, and existing fleets, the exact size of the partnership's combined fleet is difficult to pin down precisely. Some market sources estimate the actual number of vessels is fewer than 120.
However, Svein Moxnes Harfeld, CEO of tanker company DHT Holdings, recently noted on an investor call that a "fundamental shift" in the consolidation of global fleet ownership is underway, also without naming specific parties.
"We can safely say that this is happening and it is having an impact, whether it's on spot rates, customer demand for period charters, or the value of second-hand VLCCs," he said. "This consolidation is changing the pricing mechanism and putting pressure on the timely availability of vessels."
Market sources say benchmark earnings for VLCCs, which can carry two million barrels of oil, now exceed $120,000 per day, having surged more than fourfold in a month, partly due to Sinokor's series of transactions.
Sinokor's acquisitions have focused on vessels aged ten years and older, and the resale prices for older supertankers have been climbing in recent weeks.
Market participants indicate that rising vessel values themselves will also support long-term charter rates. If a ship is not sold, its appreciation is an unrealized gain; therefore, one way for an owner to benefit from the price increase is to charge higher charter rates for the vessel.
Boom and Bust
However, the shipping industry is notoriously cyclical—periods of high earnings typically trigger large-scale newbuilding orders, leading to an influx of new vessels years later that creates oversupply. Clarksons data shows that the recent rate increases have already begun to stimulate tanker orders, with the current orderbook as a proportion of the existing fleet reaching its highest level in a decade.
While the specific details of the collaboration between Sinokor and Aponte are not clear, the two have prior business dealings. Clarksons data indicates that Sinokor sold a batch of container ships to Aponte's MSC late last year.
Even based on conservative estimates of the number of vessels acquired, this buying spree has cost approximately $1.5 billion, with some market participants believing the figure could be closer to $3 billion.
"This unprecedented market consolidation, driven by a financially strong buyer, coincides with persistently tightening market fundamentals," said Aristidis Alafouzos, CEO of Okeanis Eco Tankers. "For those who own tankers today and have the capability to fully capitalize on market opportunities, all of this creates an excellent setup."
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