Surge In Tanker Orders Signals Strong Demand And Renewal Efforts


  • Tanker ordering levels have surged in the early months of 2024, with 104 new tankers added to the global order book, marking a significant increase from 79 during the same period last year.
  • This represents a robust year-on-year growth of approximately 32%.

The values for Tanker newbuildings have also witnessed a notable uptick across all subsectors. Particularly, LR2s of 115,000 DWT have seen a substantial increase of approximately 7.31% since the beginning of the year, reaching USD 74.16 million. This surge in values reflects the sector’s sustained upward trajectory, nearing levels not seen since 2008.

Shifts in Ordering Patterns

Of the Tankers ordered in 2024, the MR sector comprises the majority, accounting for approximately 37%, followed by VLCCs at 31%, Suezmaxes at 19%, and LR2s at 12%. Aframaxes make up just 1% of all orders placed this year, with no LR1 orders reported. Chinese shipyards have taken the lead, securing around 57% of orders, followed by South Korea with 36% and Vietnam with 6%.

Key Players and Trends

Greek buyers have emerged as the most active in ordering Tankers, with 28 orders placed primarily in the Suezmax sector. Indonesia’s Pertamina follows closely with 15 MR Tanker orders, while Bermuda secures the third-highest number of orders at eight.

Drivers of Demand

The surge in demand for new Tankers can be attributed to efforts by owners to modernize aging fleets and comply with stringent environmental regulations. Additionally, tightening Know Your Customer (KYC) regulations on secondhand sales have pushed owners towards new builds to ensure clean title ships. Positive sentiment and firm earnings in the sector, driven by increased tonne-mile demand and geopolitical uncertainties, have further bolstered new orders.

Notable Contracts

Recent notable contracts include EuroGreen Maritime’s order for four MR2 Tankers of 50,000 DWT, and Union Maritime’s order for two LR2 Tankers of 115,000 DWT. These contracts underscore the industry’s optimism and commitment to meeting evolving demands while embracing technological advancements.

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Source: Vessel Value