China leads expansion of tanker builder base as owners seek yard capacity

Shipowners are placing tanker orders with builders lacking a track record in the sector as capacity pressure at established yards widens the supplier base. Hellenic Shipping News Worldwide, carrying analysis from Veson Nautical, reported that 51 vessels had been ordered for the first time at newbuild yards in 2026, compared with 38 in 2025, a rise of 34%, according to VesselsValue orderbook data.

The expansion is concentrated in China, which accounts for 11 of the 16 yards in the report’s geographical breakdown. Individual entrants were also identified in South Korea, Vietnam, Brazil, the US and the Philippines. Separately, the analysis said 18 more-established yards had secured their first tanker contracts in recent years. Aframax and Handy tankers dominate first-time activity, while newcomers to VLCC and Suezmax construction tend to be established industrial groups or joint-venture facilities rather than entirely new builders.

Among the latest contracts, Anhui Zhongrun Heavy Industry received its first tanker order from a Greek owner for two MR1 vessels plus three options, each of 41,000 dwt, with delivery scheduled for 2029. The report cited a VesselsValue valuation of $38.6 million. Haifeng Shipbuilding also entered the sector earlier in the month, taking orders from Yangzijiang Maritime Development for two LR2s and four MR2s. The analysis found no notable pricing difference at Haifeng despite its lack of tanker-building experience.

Hengli Shipbuilding illustrates the speed at which capacity is emerging. Having completed its first vessel in 2024, it now has Asia’s largest yard orderbook, covering 495 bulk carriers, tankers and container ships worth $46 billion, according to the report. Across the tanker market, the orderbook represents 11.8% of the fleet, increasing to 27.5% for VLCCs and 26.8% for Suezmaxes.

Newbuild values remain close to historical peaks across tanker segments. The report identified 160,000 dwt Suezmaxes as recording the largest monthly increase, with values rising 4.98% from $91.68 million to $96.25 million. It attributed owners’ willingness to invest partly to confidence that strong charter markets could deliver relatively short payback periods. However, it cautioned that the expanding builder base’s ability to sustain construction quality and meet delivery schedules at current order volumes remains untested.