VesselsValue: Chinese Owners Take the Lead in VLCC Market

With a rising concentration of ownership of very large crude carriers, Chinese companies have emerged as the ones taking the lead.

According to VesselsValue, the country’s top two owners, China VLCC and COSCO, together have 83 carriers on the water with another 19 on order.

Through the recently announced merger between tanker operators Euronav NV and Gener8 Maritime, the companies would form a combined fleet of 56 live vessels, if the deal is finalized as planned.

Although the move would push the combined company slightly ahead of China VLCC, VesselsValue said that they are not expected to maintain a lead for long.

Out of the total 227 VLCCs owned by five largest owners, Chinese-built ships make up 110 vessels, followed by South Korea-built ships at 98 VLCCs.

“Ordering activity should slow as the large crude tanker market digests the expected delivery of new ships over the next two years amid weak rates,” VesselsValue said, adding that China’s growth is expected to continue.