A REBOUND in crude tanker newbuilding orders is signalling a new phase of fleet renewal driven by an ageing fleet and robust freight earnings. The surge, led by Greek shipowners, marks one of the most active periods for crude carrier contracting in recent years.

Since the start of the year, almost 200 tankers of above 40,000 dwt were ordered, with the crude tanker sector accounting for around 40% of all newbuilding activity.

The suezmax segment has led the surge, recording 52 new ships, equivalent to about a quarter of all tanker contracting, while the VLCC segment accounted for 41 new ships since the beginning of the year.

Ordering momentum was especially strong for crude oil tankers in October, with 23 new ships alone being ordered. A total of 17 of the vessels were VLCCs.

Privately owned Greek shipowners have been most active in the ordering of VLCCs and included Laskaridis, which was reported by brokers to have ordered two ships from China’s Hengli Heavy Industries Dalian in the past week.

Other Greek shipowners contracting VLCCs at resurgent Hengli, the former STX Dalian shipyard, in October included Capital Maritime & Trading, which ordered a single, scrubber-fitted, vessel and Dynacom Tankers Management, which signed up for four ships at the same builder. 

Meanwhile, China’s Cosco was confirmed to have contracted six LNG-ready VLCCs at Dalian Shipbuilding Industry in the past week.

Recent suezmax newbuilding contracts included a three-ship order placed by London-headquartered Zodiac Maritime at South Korea’s Samsung Heavy Industries.

The 157,000 dwt ships will be built at the Petrovietnam-controlled PVSM shipyard, formerly known as Dung Quat Shipbuilding Industry, which is being expanded in a joint venture with Samsung.

Xclusiv Shipbrokers analyst Eirini Diamantara said that the rise in crude tanker newbuilding contracts is closely tied to fleet demographics and tightening effective vessel capacity, during a period of strong freight markets.

“Out of the 689 active suezmaxes, some 20% are 20 years of age or more while within the VLCC segment 183 units, or around 20% of the fleet, fall into the same age category,” Diamantara told Lloyd’s List.

The situation is further complicated by Western sanctions, which have effectively sidelined a significant portion of older tonnage. Nearly half of the suezmax and VLCC fleet aged 17 years or above is currently affected by US, UK or EU restrictions, substantially shrinking the pool of commercially tradeable ships.

“As a result of sanctions, the effective trading fleet is significantly smaller than headline figures suggest, compelling owners to secure newbuilding slots early to maintain fleet competitiveness and trading flexibility,” said Diamantara.

“With shipyard capacity tightening and delivery positions extended into 2028, early commitments have become increasingly important.”

At the same time, firm earnings and resilient chartering demand continue to underpin confidence in tanker market fundamentals.

The VLCC orderbook has now surpassed 140 ships, representing around 15% of the existing fleet. With just seven VLCC deliveries expected this year, output will rise sharply to 40 vessels in 2026 and peak in 2027 with 58 ships scheduled.

In the suezmax sector, the orderbook now equates to over 20% of the current fleet by number of ships.

Although many shipowners cite fleet renewal and emissions compliance as key motivators, most of the latest orders remain conventionally fuelled, although some with the potential for future retrofit to methanol or LNG.

But with the IMO’s Net-Zero Framework effectively postponed, some industry observers suggest that owners that previously committed to alternative-fuel designs may now be looking to renegotiate their orders to cheaper, conventional-specification vessels.