Chinese Shipyards Gain Oil Tanker Orders Amid Iran War Demand

Chinese shipyards are experiencing a significant influx of oil tanker orders, fueled by the ongoing conflict in Iran and the crisis in the Strait of Hormuz. They are capitalizing on their robust production capacity, competitive pricing, and expedited delivery schedules. Advantage Tankers of Switzerland, which had previously depended on South Korean shipyards, has placed an order for two VLCCs, each with a deadweight tonnage of 307,000, scheduled for delivery in Q2 2028 and Q3 2029, according to a report from China Ship Survey last Thursday. Additionally, Mercuria Energy Group from Geneva has entered contracts worth nearly US$650 million for up to four VLCCs and two LR2 product tankers, to be delivered by 2029. Yangzijiang Maritime Development from Singapore, supported by Chinese billionaire Ren Yuanlin, has also ordered eight VLCCs, marking its entry into the large-tanker market, with deliveries anticipated between 2028 and 2030. Furthermore, Advantage Tankers is currently constructing a 319,000-deadweight-tonne VLCC, the Advantage Visual, in Jiangsu province, which is expected to be completed in Q4 this year. This vessel, acquired from Trafigura for approximately US$119 million, is now valued at US$152 million. These developments underscore China's leading position in global shipbuilding and the emerging opportunities amid ongoing disruptions.