China has taken a commanding lead in the global market for very large crude carriers, capturing over 90% of new Very Large Crude Carrier (VLCC) orders in the first quarter of 2026. According to the latest industry data, Chinese shipyards secured 67 VLCC newbuilding orders in the quarter, accounting for 92% of the global market share, while delivery slots at major domestic yards have been booked through 2030. The surge comes as China’s shipbuilding sector continues to expand its dominance across all major vessel types, with new orders in early 2026 soaring nearly 200% year-on-year.
The manufacturing of a VLCC – a vessel capable of carrying over 2 million barrels of crude oil – typically takes about one year from steel cutting to final delivery, though China’s most efficient yards have demonstrated the ability to deliver months ahead of schedule. Chinese shipbuilders have also mastered advanced dual-fuel technologies. The world’s first methanol dual-fuel intelligent VLCC, delivered in December 2025 by China State Shipbuilding Corporation’s Dalian Shipbuilding Industry Company (DSIC), utilizes a domestically produced methanol dual-fuel propulsion system that reduces sulfur oxide emissions by 99%, cuts carbon dioxide emissions by up to 92%, and lowers particulate matter emissions by 90% compared with conventional fuel. China has additionally developed methanol and liquid ammonia dual-fuel technologies, positioning its shipbuilders at the forefront of green shipping solutions.
Industry data shows that VLCC ordering activity in late 2025 and early 2026 has already exceeded the previous annual record set in 2006. Among Chinese shipbuilders, Hengli Heavy Industry has emerged as the global leader in VLCC orders, with nearly 100 VLCC vessels on its order book. The company, which began full-scale production only in early 2023, announced in May 2026 that it would deliver a VLCC nearly six months ahead of its contracted schedule, demonstrating China’s rapidly improving shipbuilding efficiency. China State Shipbuilding Corporation’s Dalian Shipbuilding Industry Company (DSIC), China’s first VLCC builder, has also remained highly active, publicly disclosing 20 VLCC orders within a single month, with delivery schedules extending from 2028 through 2030. Delivery slots at major Chinese yards are now filled through at least the end of the decade.
The explosive growth in VLCC orders reflects both strong global tanker demand and the ongoing shift of high-end shipbuilding capacity from traditional industry leaders in Japan and South Korea to China. Analysts note that shipbuilding capacity has become highly concentrated, with leading Chinese yards operating at full utilization and no major expansion plans announced, limiting the industry’s ability to further increase output in the near term. For China, the VLCC order surge represents a qualitative leap from low-cost manufacturing to the core supply of premium vessel types. As Chinese shipyards continue to innovate in green propulsion and shorten construction timelines, the country is steadily transforming from the world’s largest shipbuilder into a global leader in high-value, technologically advanced vessel construction.