VLCC newbuilding orders on course for record-breaking year

According to Veson Nautical, shipowners placed orders for 183 VLCCs during the first half of 2026, compared with just 18 during the same period last year.

“This represents by far the highest volume of VLCC newbuilding orders recorded in any comparable half-year period in recent history. The surge has been driven in large part by the same wave of confidence that propelled Sinokor and other Korean and Greek owners into the secondhand market earlier in the year,” Veson Nautical said in its recent mid-year report.

The firm noted that owners’ investment decisions are being supported by charterers’ willingness to take positions on forward deliveries, given the strength of current time charter rates.

Owners are increasingly turning to newbuildings to secure future fleet growth, despite accepting long lead times at shipyards, as secondhand values continue to rise and available tonnage becomes increasingly difficult to source.

Veson Nautical data shows that a newbuild VLCC is currently priced at around US$132M, while resale deals are commanding approximately US$172M. Values across all age segments have increased by up to 40% between January and June this year, with 10- to 15-year-old assets recording the strongest gains. Current asset values are approaching levels last seen during the 2008 supercycle, according to Veson Nautical.

The aggressive Sinokor-MSC expansion strategy has been a key driver behind the market’s recent strength, with their acquisition spree absorbing available tonnage and tightening vessel supply.

Rising tensions in the Strait of Hormuz, the US’s emergence as a major crude export hub supporting higher tonne-mile demand, the continued growth of the sanctioned fleet as a supply constraint factor, and strengthening overall supply-demand fundamentals have also contributed, Veson Nautical said.

These sizeable newbuilding contracts have pushed the VLCC orderbook-to-fleet ratio to around 33%, compared with 12% last year.

“That pipeline of new tonnage will hit the water over the coming years and represents the most significant headwind on the horizon for tanker rates,” Veson Nautical said.