Crude tanker newbuilding contracts have surged in 2026, reaching 60 million deadweight tonnes (DWT) across 234 ships, primarily due to increased orders for Very Large Crude Carriers (VLCCs). This year marks the highest level of crude tanker contracting on record, with 151 VLCCs ordered, representing 79% of the total contracted capacity. Orders for Suezmax tankers have also matched last year’s totals, reflecting a broader trend in fleet renewal driven by high freight rates and the aging fleet.
The current crude tanker order book has hit 130 million DWT, the highest ever, equating to 27% of the existing fleet. Deliveries are anticipated to rise gradually until 2028, a significant increase from the less than 10 million DWT delivered annually over the past three years. As the average age of the fleet is now around 14 years, this influx of new ships is crucial for fleet renewal.
Despite this growth, only 2% of new contracts are for vessels using alternative fuels, primarily LNG, with an additional 17% designed for future retrofitting. Chinese shipyards dominate the market, accounting for 82% of orders this year. However, contracting may slow as lead times extend to two to four years, and uncertainties in transit conditions in the Strait of Hormuz may impact future market dynamics.
