‘Astonishing year’ sees VLCC contracting smash through historical records

The first half of 2026 has seen VLCC contracting surge, exceeding previous annual records by a huge margin.

MSI reports 177 VLCCs totalling 54.5m dwt ordered during the first half of 2026, with the VLCC orderbook-to-fleet ratio at around 35% as of June, up from just 2% in 2023.

Even if no further orders had been placed in H2, the H1 2026 figure would still be the highest year for VLCC ordering in history, far exceeding the second highest of 32.6m dwt contracted in 2006. Read more at Allaboutshipping.co.uk.

Newbuilds likely to be needed as Southeast Asia’s OSV fleet ages

Southeast Asia’s fleet of platform supply vessels (PSVs) and anchor-handling tug/supply (AHTS) vessels is ageing. At the same time, demand is increasing, driven by higher oil prices and concerns about energy security.

As MSI associate director Todd Jensen told OSJ, anchor-handling tugs account for around 70% of active vessels in the region. Mr Jensen and his colleagues at MSI expect utilisation to continue to increase in 2H 2026 and in 2027, not least because of a number of jack-up rig contracts signed in H1 2026, which will drive demand for vessels. Read more at Riviera.

Shipyards compete with AI for engines

A familiar constraint from shipping’s last great shipbuilding boom is beginning to reappear: yards are short of engines.

“We’ve certainly heard that the availability of engines is having an impact on some yards, in terms of output,” said Adam Kent, who heads up consultancy Maritime Strategies International (MSI). “However, I think this is ultimately leading to delays and pushing out deliveries rather than yards not taking orders.”

Kent added that engine prices are helping support elevated newbuilding prices. Read more at Splash247.com

Weaponized waterways unsettle grain freight

In their recently published book, “How to Win a Trade War,” the Financial Times economics columnist Soumaya Keynes and the Peterson Institute’s Chad Bown explained how governments and companies should fight the trade conflicts that have become a permanent feature of the global economy. In the current shipping climate, though, a more fitting title might have been “How Trade Becomes a Weapon of War.”

However, Will Fray, director at Maritime Strategies International (MSI), told World Grain that geopolitics tells only part of the story. He said most of the market’s firming through the first quarter was down to non-geopolitical factors, with grain shippers swept into the bigger demand swings running across the bulk market.

“At the forefront has been Chinese import behavior,” he said. “We have been surprised at how much China has maintained its import demand for key raw materials, like iron ore and bauxite, despite softening consumption dynamics and high stockpiles. Read more at World Grain.com

Anchor-handler scarcity leads to record high North Sea rates

Changes are taking place in the OSV market in the North Sea as the number of high-spec anchor-handling tug/supply (AHTS) vessels declines, partly because of demand elsewhere, partly because of a dearth of newbuilds, and partly because of a contraction in the number of owners of specialized tonnage.

Figures provided by Maritime Strategies International (MSI) suggest that there are currently around 570 OSVs in Northwest Europe, and that the northwest European fleet – as with much of the global OSV fleet – is an aging fleet, with 55% of vessels more than 15 years old, and just 9% less than 10 years old. Read more at Riviera.

Has dual-fuel ambition stalled in the face of commercial reality?

Limited infrastructure, fuel availability and regulatory uncertainty have seen orders for alternative fuel-capable ships fall from their 2024 peak, writes MSI’s Mariam Tzannatos.

Dual-fuel capable newbuilding activity has fallen consistently over the past two years and further and faster in the past five months.

Data published by Maritime Strategies International suggests that investors are having second thoughts on the use of alternative fuels as a combination of regulation, price and availability reverses the trend of recent years. Read more at Tradewinds.

Structural risks on the horizon in Middle East offshore industry

A combination of contract terminations, spiralling insurance costs and the threat to EPC projects are creating a complex combination of risk for offshore operators in the Middle East as a result of the closure of the Strait of Hormuz

In its latest Horizon Monthly Offshore report, MSI notes that, whilst contract terminations for rigs have been few, a return to pre-conflict levels could take months as fields are brought back onstream and construction projects get back up and running.

MSI associate director Todd Jensen said, “One hot topic for operators has been rising operating costs with insurance and crew costs inflating due to the conflict and a rise in war premiums seeing insurance increase up to 10 times over the last few weeks. Read more at Riviera.

Gulf disruption drives divergence between oil tanker earnings and cargo

Spot earnings in market segments less exposed to the Middle East have already taken a distinctive downturn and large tankers are likely to follow if cargo levels drop, says research firm MSI.

“In segments less exposed to the Middle East, such as Aframaxes and MRs, spot earnings have already taken a distinctive downturn and are now back to ‘normal’ levels compared to the extremes seen in March and April,” says MSI Director Tim Smith. Read more at Riviera.

Geared bulker values surge on robust demand for modern vessels

Firm earnings and shipyards focussed on tankers have pushed five-year-old Ultramax values above newbuildings and equivalent-age Kamsarmaxes.

The latest HORIZON Monthly Dry Bulk Report from MSI notes that since the middle of 2025, bulker asset values have been steadily on the rise, with particularly notable gains seen within the Handymax segment (45-70k Dwt). Over the first four months of 2026, new, five-year-old and 10-year-old Ultramax prices increased by approximately 10%, 13%, and 20% respectively. Read more at Dry Cargo International