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China’s shipyards secure wave of oil tanker orders as Iran war drives demand
China already dominates global shipbuilding orders – and the Strait of Hormuz crisis appears to be boosting demand
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China’s shipyards are emerging as beneficiaries from the US-Israeli war on Iran, securing new orders as crude transport bottlenecks worsen and global demand for large oil tankers rises.
With the United States and Iran effectively blockading the Strait of Hormuz – a chokepoint that handles about a quarter of the world’s seaborne oil – shipping companies are racing to expand capacity, particularly in very large crude carriers (VLCCs) capable of transporting about 2 million barrels of oil per voyage.
The flurry of orders comes amid mounting pressure on global shipping. The strait has been largely blocked for eight weeks, sending crude oil prices to historic highs. Tankers are taking longer routes to avoid risky journeys through the Persian Gulf, exacerbating already tight fleets caused by ageing vessels and further straining supply.
But the disruption is opening new opportunities for Chinese shipbuilders, which are benefiting from strong capacity, lower costs and shorter delivery times. At least two Swiss firms and one Singapore-based company have placed VLCC orders with Chinese shipyards in recent weeks.
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