Middle East Tanker Market Faces Potential Supply Glut
The Middle East tanker market has experienced a surge in VLCC orders this year due to increased demand from oil-producing countries, raising concerns about a potential supply glut when new vessels are delivered in 2028-2029.
According to Maritime Strategies International (MSI), 177 VLCCs were contracted for new construction worldwide in the first half of this year, surpassing the previous annual record of 32.6 million DWT set in 2006.
The total deadweight tonnage (DWT) of VLCCs ordered in the first half reached 54.5 million DWT, with prices exceeding $130 million per ship, a level not seen since 2008.
MSI analyzed that about 83% of VLCCs ordered this year are scheduled for delivery in 2028 and 2029, which could place a heavy burden on the supply-demand balance in the VLCC market going forward.