- Tanker contracting in 2024 is projected to reach 60.8m dwt, marking the second-highest level in history.
- Significant deliveries are expected from 2025 onwards, driven by the contracting surge of 2023-2024.
- Vessel deliveries are expected to outpace scrapping, potentially impacting utilization rates.
The tanker market is experiencing a significant surge in contracting activity. 2024 is poised to become the second-highest year on record for tanker orders. Maritime Strategies International (MSI) highlights key trends in contracting, deliveries, and their potential impact on the market, reports Xinde Marine News.
Record-High Tanker Contracting in 2024
2024 is set to record 60.8m dwt in tanker contracting, a 20% increase from MSI’s earlier forecast.
This level is second only to the 2006 super-cycle, with 55m dwt ordered in the first 11 months of the year.
Surge in Deliveries Expected from 2025
Deliveries are projected to rebound strongly in 2025. 19.4m dwt will be entering the market, particularly in the latter half of the year. This upward trend will accelerate in 2026, with deliveries reaching 37m dwt due to the high contracting levels of 2023-2024.
Regional Trends in Tanker Contracting
China has emerged as a dominant player—22 m dwt in VLCC orders placed in Chinese shipyards from January to November 2024.
The year’s second half saw Chinese owners leading orders, shifting from European and Middle Eastern dominance in the first half.
Variations Across Tanker Segments
While VLCC and LR2 contracting remained robust, Suezmax and Aframax orders saw notable declines.
Only two Suezmax vessels were ordered between August and September. Uncoated Aframax orders ceased entirely after September.
Implications for Market Utilization
MSI Director Tim Smith states that the increase in vessel deliveries over the next few years will outweigh scrapping rates.
This imbalance may put downward pressure on utilization rates across the forecast period.
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Source: Xinde Marine News
