Trafigura, one of the world’s largest metal and mineral traders, has placed an additional order for Very Large Crude Carriers (VLCC) with New Hantong Ship Heavy Industry Co., Ltd (NHT). This move aligns with the shipping industry’s prevailing trend toward larger tankers, bringing the shipowner’s total VLCC orders at Chinese shipyards to 10 units.
Shipping data platforms indicate that Trafigura has placed an additional order with New Hantong Ship Heavy Industry for two 319,000 DWT VLCCs, scheduled for delivery in 2029 and 2030 respectively. Combined with the latest batch of two newbuilds, Trafigura’s total VLCC orders with New Hantong Ship Heavy Industry now reach ten vessels, with the first batch set for delivery starting in 2026. Based on previous orders for vessels of the same type, the estimated cost per vessel is approximately $120 million, bringing the total value of the ten newbuildings to around $1.2 billion.
It is understood that Trafigura’s collaboration with New Hantong Ship Heavy Industry began in early 2024, when the two parties announced the signing of a shipbuilding contract for two 319,000 DWT VLCCs. This order holds significant importance for New Hantong Ship Heavy Industry, representing its first-ever VLCC order. It marks a breakthrough for the shipyard in the construction of large tankers and positions it as one of the few private shipyards in China capable of building VLCCs. For the shipowner, the two newbuilds included in this order also constitute its first fleet of owned VLCCs.
Building on the mutually beneficial cooperation established between the two parties, Trafigura placed orders for two VLCCs in early 2024, followed by additional orders for six more VLCCs from New Hantong Ship Heavy Industry in June 2024 (three vessels), September 2024 (one vessel), and July 2025 (two vessels). All vessels are specified at 319,000 deadweight tons. Combined with the two vessels disclosed in November this year, the two parties have now signed contracts for a total of 10 VLCCs in less than two years.
In addition to Trafigura, Swiss shipowner Advantage Tankers has placed an order for one VLCC with New Hantong Ship Heavy Industry. The order details were made public in April this year, with delivery expected in the fourth quarter of 2026. To date, New Hantong Ship Heavy Industry has secured orders for a total of 11 VLCCs.
New Hantong Ship Heavy Industry previously stated that this VLCC employs advanced technical design to meet the latest environmental and energy efficiency standards set by the International Maritime Organization (IMO), and will be constructed in strict compliance with international shipbuilding regulations.
This year, New Hantong Ship Heavy Industry has shifted its previous strategy of focusing solely on bulk carrier orders, diversifying its new shipbuilding orders. The shipyard’s new shipbuilding projects so far this year are relatively evenly distributed across the three major ship types: container ships, bulk carriers, and tankers. It includes four 4,500 TEU container ships and three 22,000 TEU LNG-fueled ultra-large container ships; five VLCCs, one of which features a dual-fuel LNG design; two 82,000 DWT bulk carriers; and two 210,000 DWT bulk carriers.
Data shows that Trafigura is one of the world’s leading independent multinational commodity trading and logistics companies, headquartered in Singapore. It primarily deals in base metals and energy, including petroleum. As one of the world’s largest metal and mineral traders, Trafigura Group procures, stores, blends, and delivers basic raw materials and commodities globally.
Recently, Andrea Olivi, global head of shipping at Trafigura, told Bloomberg that the tanker industry will face “unprecedented fleet replacement needs” in the coming years. The latest market data corroborates this statement. Xclusiv shipbroker data shows that as of the end of October, VLCC orders accounted for 13% of the total tonnage of the active fleet, and 35% of the active fleet is 16 years or older.
According to statistics from shipbroker Allied Shipbroking, as of mid-November this year, a total of 45 VLCCs have been ordered globally, while the total orders for the entire year of 2024 amounted to only 72 vessels. This new wave of shipbuilding activity is primarily driven by several major shipowners, including Scorpio Tankers, COSCO Shipping, Laskaridis Maritime and TMS Tankers.