The global oil tanker market has long been dominated by China and Greece. Supported by Greek shipowners’ substantial order backlog for very large crude carriers (VLCCs), Greece is poised to surpass China and become the world’s largest shipowning nation in this segment of the oil tanker market.
Based on a recent report released by the shipping brokerage firm BRS Shipbrokers, China currently has the largest number of VLCCs, with a total of 206 vessels in active service, accounting for approximately 22% of the world’s total VLCC carrying capacity.
BRS noted: “Chinese shipowners’ large-scale investment in VLCCs directly reflects China’s ‘transport domestic goods with domestic vessels’ policy. At the same time, as the world’s largest crude oil importer, China relies on VLCCs to transport the majority of its imported crude oil.”
By comparison, the Greek tanker fleet is more diversified, ranking first among shipowners in segments ranging from MR1 product tankers to Suezmax tankers. Looking solely at the VLCC segment, Greece currently ranks second globally, with an active fleet of 144 vessels, accounting for approximately 16% of the world’s total VLCC carrying capacity.
BRS Analysis states that the development characteristics of the Greek tanker fleet reflect that “the Greek tanker fleet is commercially oriented and focuses on global third-party transport and tramp shipping.”
However, judging by current newbuilding orders, the landscape has already shifted: According to BRS data, Greek shipowners have 72 VLCCs on order, while Chinese shipowners have only 47.
A BRS analyst noted: “Chinese-affiliated companies own a total of 77 aging VLCCs that are 20 years old or older, while most of the aging VLCCs affiliated with Greek shipowners have already been sold (with many acquired by Chinese shipowners). Backed by a large order book for VLCCs, the Greek VLCC fleet is expected to surpass that of China in size.”
However, BRS also points out that since about one-third of the VLCC orders held by Greek shipowners were placed by companies with little or no experience in VLCC operations, some of these vessels may be resold before delivery. Therefore, it remains to be seen whether the Greek fleet will be able to surpass China in this sector.