State-run Shipping Corporation of India Ltd (SCI) has invited bids to acquire one firm and one optional second-hand very large crude carrier (VLCC) — oil supertankers worth an estimated $200 million in the current market — as the national carrier accelerates its fleet renewal and expansion plans.
The move follows the government’s intent to drop the privatisation process for SCI, launched in December 2020, amid changing circumstances and a renewed focus on strengthening the country’s strategic shipping capacity.
According to tender documents, SCI is seeking to acquire 10-year-old VLCCs with a deadweight tonnage (dwt) of about 310,000 tonnes. The company currently operates five oil supertankers and remains India’s only domestic fleet owner in this segment.
The timing of SCI’s tender coincides with a sharp surge in VLCC freight rates, which have recently climbed above $80,000 per day on major routes — the highest levels in over five years. Analysts attribute the rally to higher crude output from OPEC+ and other major producers, tightening tanker supply, and disruptions caused by new U.S. port fees on Chinese vessels, which have forced ship owners to reroute or seek alternative cargoes.
However, shipbrokers caution that SCI may face challenges in securing vessels at a reasonable price in the current overheated market.
“They won’t get the ships easily,” said one broker. “Sellers will demand a premium, especially since they must keep commercial offers valid for three months.”
Another broker estimated that SCI may have to pay around $100 million per vessel, reflecting the ongoing spike in asset values.
In addition to the VLCCs, SCI has also issued tenders to acquire two second-hand Suezmax tankers and one firm and one optional container ship of up to 20 years old, with capacities ranging from 12,000 to 18,000 TEUs. The targeted Suezmax tankers, capable of transiting the Suez Canal fully laden, should be 7–10 years old with a carrying capacity of 140,000–160,000 dwt.
The flurry of acquisition activity comes shortly after SCI’s board approved a long-term business plan prepared by Deloitte, underlining the company’s strategic shift from disinvestment to expansion as it seeks to reinforce its position in India’s maritime sector.
