Pan Ocean joins VLCC newbuilding wave, lifts investment tally above US$1Bn

In a stock exchange filing on 27 March, the company announced it will proceed with the construction of a single VLCC, with delivery scheduled for the end of 2029. The shipyard has not been disclosed.

Pan Ocean said the vessel will cost approximately US$122M.

The company added that the VLCC will be designed for potential conversion to burn ammonia, depending on future developments in alternative fuel markets.

Pan Ocean has had an active start to the year. The group has already ordered four Newcastlemax bulk carriers, with deliveries scheduled through 2031, representing an investment of around US$308M. In addition, it has agreed to acquire 10 secondhand VLCCs from SK Shipping for US$668M.

According to its latest corporate presentation, Pan Ocean oversees a fleet of 246 vessels, including chartered-in tonnage. Of these, 202 are bulk carriers, with the remainder comprising tankers, container ships, heavy-lift units and LNG carriers.

The company is also running a newbuilding programme that includes two VLCCs, six MR tankers and six Ultramax bulk carriers.

South Korean media have reported that Pan Ocean is seeking to expand its VLCC business, in line with a broader surge in newbuilding activity across the sector.

The latest major order in this segment involves Chinese shipping giant China Merchants, which is expected to contract CSSC’s Dalian Shipbuilding Industry Co for 10 VLCCs.

According to Xclusiv Shipbrokers, 47 VLCCs had been ordered globally as of early March 2026. The orderbook-to-fleet ratio stands at nearly 22% in dwt terms, while around 41% of the active fleet is 16 years old or more.