VLCC Newbuilding Market Reaches Historic Territory
The VLCC newbuilding market has entered uncharted waters, with orders in the last quarter of 2025 and the first quarter of 2026 surpassing the highest annual total on record.
Record-Breaking Orders
According to broker Hartland, the orderbook-to-fleet ratio has increased from 10% to 26% in just 15 months, with around 125 VLCCs ordered in Q4 2025 and Q1 2026.
This surpasses the previous all-time high of 108 vessels set in 2006, with data from Veson Nautical showing that VLCC earnings reached record levels of approximately $175,000 per day in Q1 2026.
Driving Factors
- Closure of the Strait of Hormuz
- Sinokor's aggressive fleet acquisition programme
- Sanctions-related supply dynamics
Industry body BIMCO confirmed that records are falling across the board, with newbuilding contracting rising 40% year-on-year to 17.6 million compensated gross tonnes in Q1 2026.