Shipowners double supertanker orders in 2026 amid US-Iran conflict
by@Reuters
Summary
In 2026, orders for supertankers have more than doubled compared to the previous year, with over $20 billion committed to this resurgence, primarily driven by the ongoing US-Iran conflict that has nearly closed the Strait of Hormuz. This conflict has forced Asian and European refiners to seek alternative oil supplies from the Atlantic basin, while Middle Eastern producers are using shuttle tankers to navigate the heightened risks in the region. Alongside these geopolitical shifts, the demand for Very Large Crude Carriers (VLCCs) is also fueled by an aging fleet, with around 20% of current vessels exceeding 20 years in service, prompting shipowners to invest in new vessels to meet expected long-haul oil trade needs.
Tokens
$FRO
Analysis
Vortexa: Vortexa is a data intelligence firm specializing in energy commodity flows and market analysis. Its analyst highlighted how Atlantic basin oil production growth, led by countries like Brazil and Guyana, is favoring longer-haul tanker trades amid Middle East supply disruptions. Frontline: Frontline is a major international tanker shipping company focused on crude oil transportation. Its CEO discussed how damage to a Saudi pipeline and risks in the Strait of Hormuz are prompting greater involvement by Middle Eastern producers in owning and operating tankers. Lars Barstad: Lars Barstad is the CEO of tanker group Frontline. He commented on the temporary need for Saudi Arabia to increase its participation in tanker operations following damage to a key pipeline and ongoing risks in the Strait of Hormuz. Veson Nautical: Veson Nautical is a shipping analytics platform that delivers data and market intelligence on vessel orders, fleet age, and trade flows. It supplied data on the ageing VLCC fleet and analyst views on sustained long-haul oil shipments from the Atlantic basin to Asia. Allied Shipbroking: Allied Shipbroking is a maritime brokerage firm specializing in data, analysis, and services for the shipping and tanker markets. In this news, the firm recorded a sharp rise in VLCC orders and noted record-high freight rates linked to US-Iran tensions and route changes. Anushree Mukherjee: Anushree Mukherjee is a Reuters commodities and energy reporter based in Bangalore, India, covering oil, gas, and related sectors with a focus on geopolitics and supply chain linkages. Rebecca Galanopoulos: Rebecca Galanopoulos is a senior analyst at Veson Nautical focused on shipping and tanker markets. She attributed much of the renewed VLCC ordering to shipowners' expectations of increased long-haul crude shipments from the Atlantic to Asia. Ioannis Papadimitriou: Ioannis Papadimitriou is an analyst at Vortexa specializing in energy trade and production trends. He noted that regional Atlantic basin output growth will support longer-haul trades on larger vessels, benefiting from diversification away from Middle Eastern sources. Geopolitics: US-Iran conflict has caused virtual closure of the Strait of Hormuz, forcing refiners in Asia and Europe to seek alternative oil supplies from the Atlantic basin. Fleet Trends: After years of limited ordering, shipowners are prioritizing renewal of the VLCC fleet due to its age and expectations that long-haul oil trade will remain resilient despite the energy transition. Shipping Routes: Middle Eastern producers are increasingly turning to shuttle tankers and alternative routes to bypass risks in the Strait of Hormuz, tying up vessels and boosting overall demand for larger carriers.
Categories
macrotechcryptopolitics