The Comeback of Suezmax Crude Oil Tankers Once Overshadowed by VLCCs

Bottlenecks in VLCC supply
Structural shifts in crude oil supply chains
Strengths in port accessibility and maneuverability
New Suezmax orders surged 48% last year

Suezmax-class crude oil tankers, which had long been treated as a niche segment overshadowed by very large crude carriers (VLCCs), are back in the spotlight. Rather than a simple shift in preferred vessel types, analysts say the strategic value of mid-sized tankers is being reassessed as supply bottlenecks for ultra-large ships, structural changes in the crude oil supply chain, and geopolitical factors all converge.

Suezmax-class crude oil tanker. The photo is not directly related to this article. Provided by HD Korea Shipbuilding & Offshore Engineering.

According to the "2025 Year-End Report" by U.S. shipping market analysis firm Besson Nautical, new orders for Suezmax-class crude oil tankers reached 74 vessels last year, up 48% from 50 vessels a year earlier. Over the same period, new VLCC orders declined from 82 to 75. Orders for Aframax- and Panamax-class tankers, which are smaller than Suezmax, also fell by 59% and 71%, respectively, making it clear that demand is concentrating only on mid-sized vessel classes.

The immediate backdrop to this trend is a supply bottleneck in VLCCs. Although seaborne crude volumes have increased as OPEC and OPEC+, the consultative group of non-OPEC oil-producing countries, raised crude output from a daily average of 41.7 million barrels to 42.8 million barrels last year, the VLCC construction slots at major shipbuilders are already fully booked with three to four years’ worth of orders. As the gap widens between when ships are needed and when they can actually be delivered, shipowners are turning their attention to Suezmax vessels, which can be built at mid-sized shipyards.

Suezmax vessels, with a capacity of 120,000 to 160,000 DWT, carry less cargo than VLCCs but offer advantages in port accessibility and maneuverability. While VLCCs require ports with a minimum water depth of more than 40 meters to berth, Suezmax tankers can access ports with depths of around 20 meters. Ports along the U.S. Gulf of Mexico coast, where average water depths are shallow, are typical areas where they are used. An industry insider explained, "At shallow-draft ports, you would normally need several small tankers instead of a single VLCC, but a Suezmax can handle the transport alone, which makes it highly efficient."

These logistical advantages are being amplified by geopolitical factors. As the possibility of easing sanctions on Venezuelan crude comes under discussion, Suezmax tankers are being highlighted as the most suitable vessel type for transporting that crude to the U.S. coastline. Industry observers say, "Demand for Suezmax tankers is increasing, particularly among U.S.-based shipowners who control the Venezuelan crude supply chain."

Changes in shipowners’ strategies are reinforcing this trend. Tankers International, a U.K. shipping company that operates the world’s largest VLCC fleet, announced last month that it would enter the Suezmax market for the first time since its founding. This move is being interpreted as a shift away from a fleet strategy centered on ultra-large vessels toward diversification of vessel types in order to better manage geopolitical risks and port restrictions.

The problem is that shipyards are struggling to keep pace with the speed of demand growth. Daehan Shipbuilding, the largest mid-sized shipbuilder in Korea, has informed shipowners that even if they place new orders for Suezmax-class vessels now, deliveries cannot be made before 2029.

Delays in newbuilding deliveries are pushing demand into the secondhand market. As of February 5, 2026, the price of a secondhand Suezmax-class tanker stood at 77.21 million dollars, or 93% of the 83.36 million dollar newbuilding price. The price of a 160,000 DWT, 15-year-old secondhand vessel also rose 7.4% over the past year, from 42.43 million dollars to 45.57 million dollars. Analysts say that the scarcity of vessels that are immediately available for operation is driving prices higher.

Industry participants believe the popularity of Suezmax tankers is unlikely to fade quickly. Roughly 40% of the global fleet is more than 20 years old, creating structural replacement demand. In addition, if sanctions on Venezuela are eased in the future or if port restrictions stemming from regional conflicts persist, the role of mid-sized vessels is likely to expand even further.

Yoo Seunghoon, Professor at the Department of Future Energy Convergence at Seoul National University of Science and Technology, said, "The shipping structure centered on ultra-large vessels is hitting its limits, and the strategic value of mid-sized vessel classes is coming back into focus." He added, "Suezmax-class vessels can transit the Panama Canal, which significantly reduces transportation costs and time, providing an advantage in strengthening energy security for Asian countries. This trend is likely to continue for some time."

This content was produced with the assistance of AI translation services.