On March 10, South Korea's Samsung Heavy Industries (SHI) announced that it had signed a contract with a shipowner based in Bermuda for the construction of three crude oil carriers. These three new vessels are scheduled for delivery by the end of February 2029. The total contract value is KRW 400.1 billion (approximately USD 274 million, or CNY 1.878 billion), equivalent to a unit price of USD 91.27 million per vessel. SHI did not disclose the shipowner's identity, but JP Morgan has confirmed ordering three Suezmax crude oil carriers at SHI. For reference, data from Clarksons shows that the current newbuilding price for a 156,000-158,000 DWT Suezmax crude carrier is approximately USD 87.5 million, unchanged from the same period last year.
This is JP Morgan's second order with SHI this year. Previously, in January, SHI secured an order from JP Morgan for two large LNG carriers, with a total contract value of approximately USD 500 million. These new vessels are scheduled for delivery by the end of January 2029. Including the latest order, SHI has won a total of 11 new vessel orders so far this year, valued at USD 2.1 billion (approximately CNY 14.5 billion), achieving about 15% of its annual order target of USD 13.9 billion. These 11 new vessel orders consist of 3 large LNG carriers, 2 Very Large Ethane Carriers (VLECs), 2 container ships, and 4 crude oil carriers.
A representative from Samsung Heavy Industries stated, "Currently, the company's cumulative order backlog stands at 137 vessels, valued at USD 29.5 billion (approximately CNY 203.5 billion), securing a workload for over three years. Accordingly, in 2026, the company plans to continue its selective order-taking strategy, prioritizing profitability based on this stable backlog. In addition to LNG carriers, SHI is continuously expanding its order portfolio, focusing on high-value-added vessel types such as shuttle tankers and VLECs. While maintaining a selective order strategy centered on high-value-added vessels, SHI will also carefully study market conditions for container ships and tankers, responding flexibly to changes in the global market environment."
In recent years, the number of crude oil carriers ordered by SHI has been increasing annually. In 2023, the company secured a total of 28 new vessel orders, including 2 crude oil carriers. In 2024, it secured 36 new vessel orders, including 4 crude oil carriers. In 2025, SHI secured 43 new vessel orders, including 11 crude oil carriers. The SHI representative added, "In the global crude oil carrier market, compared to the existing fleet, the order backlog is small, and the proportion of aging vessels is high. Coupled with the strengthening environmental regulations by the International Maritime Organization (IMO) and the entry into effect of EU carbon emission regulations, demand for fleet renewal and replacement is expected to expand continuously. Consequently, the tanker market is anticipated to maintain a firm ordering momentum."
The recent blocking incident in the Strait of Hormuz is profoundly impacting the global crude oil transport supply chain. In the short term, this incident has directly pushed up tanker freight rates, especially for VLCCs. In the long term, it is expected to prompt Asian crude import demand to shift from the traditional Middle East region to more distant areas such as the US Gulf, West Africa, and Brazil. This will significantly increase the average transport distance (ton-mile), thereby fundamentally boosting the demand for crude carriers, particularly VLCCs, which are the mainstay for long-haul routes.
