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Supertanker Ordering Surpasses 2008 Peak as Market Booms and Risks Build, Bloomberg Says

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Shipowners have ordered a record number of new oil supertankers, topping the previous peak set in 2008 and reviving concerns about a repeat of the supply glut that later crushed freight rates, according to a Bloomberg analysis on Monday.

There are 262 very large crude carriers, each capable of hauling about 2 million barrels of oil, on order at shipyards worldwide, Bloomberg said, citing Clarkson Research Services Ltd., a unit of the world's largest shipbroker. That exceeds the prior high reached in October 2008.

The surge in orders was a key topic last week in Athens at the industry's biennial Posidonia maritime gathering. Some owners argue that sanctions and an aging fleet justify new investment. Clarkson data show the average age of the supertanker fleet is the highest since 1998.

Tanker markets have strengthened sharply due to conflict-related disruption involving Iran. Freight rates have roughly doubled from pre-conflict levels and at times spiked to several hundred thousand dollars per day amid supply chain shocks.

But the ongoing closure of the Strait of Hormuz has significantly reduced cargo volumes, which could weigh on earnings if it persists, particularly if the disruption weakens long-term demand.

"It's temporarily better than when the market boomed in 2004-08," George Economou, founder of the privately owned Greek shipping company, TMS Group, reportedly said, adding, "But if it continues, it's going to be bad for the tankers."

A separate driver of the boom in new tankers has been aggressive secondhand buying by a South Korean shipowner backed by MSC Mediterranean Shipping Company SA, which has been acquiring vessels at elevated prices. Sellers have, in some cases, recycled proceeds into newbuild orders.

"The biggest risk that shipping has right now is rich shipowners," said George Youroukos, Executive Chairman of Global Ship Lease and founder of Technomar Shipping, Bloomberg reported.

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