VLCC Orders Reach Record Levels Amid Market Surge

The market for new VLCCs has entered record territory, with orders placed in the final quarter of 2025 and the first quarter of 2026 already exceeding the highest total ever recorded in a full year.

According to broker Hartland, the orderbook-to-fleet ratio has risen sharply from 10% to 26% in just 15 months, compared to around 1% in mid-2023. “We estimate around 125 VLCCs were ordered in Q4 2025 and Q1 2026 – greater than any full calendar year total on record,” Hartland said, referencing the previous peak of 108 vessels set in 2006.

Figures from Veson Nautical highlight the scale of the market shift behind this surge. VLCC earnings reached unprecedented levels of about $175,000 per day in the first quarter of 2026, driven by factors such as the closure of the Strait of Hormuz, Sinokor’s fleet expansion strategy, and supply pressures linked to sanctions.

Veson Nautical also reported that newbuilding volumes hit 33.3 million dwt in Q1 2026, surpassing the already strong 27.2 million dwt recorded in Q4 2025. Crude tankers made up 90% of total orders in the first quarter, representing five times the volume seen in Q1 2025. At the same time, prices for large crude tankers and mid-sized product tankers increased by around 7% over the quarter.

Singapore-based broker Sentosa noted that several underlying factors are driving this trend. “This has been driven by a combination of factors, including the sustained strength of crude tanker earnings through the second half of 2025 and into 2026, an ageing global fleet, and improved confidence in the long-term outlook for oil demand,” the broker said.

Industry association BIMCO also confirmed the scale of the increase in newbuilding activity. “During the first quarter of 2026, newbuilding contracting has risen 40% year-on-year to 17.6 million compensated gross tonnes, driven by a tripling of new tanker orders and a rebound in LNG tanker contracting,” said Filipe Gouveia, shipping analysis manager at BIMCO.

Tankers accounted for 32% of all contracting in the quarter, the highest proportion since the second quarter of 2017. Gouveia described the development as “the highest quarterly crude tanker contracting in history.”