With over 1.6% net increase in tanker capacity overall and historically low demolitions, product tankers are emerging as the most resilient and attractive “players” in the market.
According to data from Allied QuantumSea Research, at the end of the third quarter of 2025 the global tanker fleet numbered 6,103 vessels, with a total capacity of 673.3 million DWT.
The largest part of the increase came from the MR and /LR2 categories, which are responsible for almost the entire net increase in petroleum product transport capacity.
In the first nine months of 2025, 80 MR and 47 /LR2 vessels were delivered, while additions in the larger categories -only 4 VLCC and 22 Suezmax- were numerically much fewer.
The result is the continuous strengthening of the presence of product tankers in the overall fleet mix, reflecting the changing market needs: shorter distances and diversified refined product flows.
At the same time, the total tanker orderbook amounts to 944 vessels. Of these, MR tankers are 487 vessels (51.6% of the total) and /LR2 are 192 vessels (20.3% of the total).
This means that these two categories together represent 679 vessels, i.e., approximately 72% of the total tanker orderbook – confirming that in 2025 market growth is clearly focused on product tankers and medium sizes, which now constitute the core of the new generation fleet.
MR and Aframax remain the most active categories in the secondary market as well.
During the autumn, significant transactions were completed -such as the sale of four 2014-built eco MRs by Scorpio Tankers for $32 million each- confirming the sustained strong demand for modern, efficient vessels with low emissions.
It is recalled that based on a recent survey by Xclusiv Shipbrokers, Greek shipowners have 285 vessels under construction, i.e., 24% of the global orderbook – a percentage that makes them the undisputed market leaders.
In fact, the interest is focused on /LR2, Suezmax and MR, which represent over 60% of Greek orders.
According to data reflected in the Allied report, the average age of the global tanker fleet increased to 12.7 years, with approximately 10% of the capacity (65 million DWT) exceeding 20 years.
Indicatively, MR and /LR2 have some of the most “aged” profiles: 44% of MR tonnage is over 15 years old, while in Aframax the percentage of vessels aged 15-24 years exceeds 45%.
In contrast, VLCC and Suezmax remain younger fleets, with 35% and 40% of their capacity respectively under ten years.
This phenomenon indicates a structural “imbalance”: fleet renewal is taking place mainly in the larger vessels, while the medium tonnages -which carry the largest part of the refined product- are aging faster.
At the same time, demolition activity remains extremely limited. Only 34 vessels (approximately 2 million DWT) were sent for recycling in the first nine months of 2025, i.e., less than 0.3% of the total fleet.
Most came from the MR category, with an average age of over 24 years.
Shipowners prefer to keep even the older vessels, taking advantage of the strong freight rates and high demand for transporting “dirty” and “clean” products.
The demand for scrubber-fitted, eco design MR and LR2 is continuously strengthening.
Modern MRs constitute the most “liquid” asset of the market, attracting intense interest from investors and shipping funds.
According to Allied, ships of this category remain “quickly tradable,” with narrow negotiation margins.
In fact, valuations for new generation MR resales reach $45 million per vessel, while prices for /LR2 remain steadily above $70 million for high-efficiency vessels.
Of course, profitability in the freight market also remains high: in the spot market, freight rates on the TC1 (MEG Japan) and TC5 (MEG-Japan) routes yield daily revenues between $24,000 and $32,000.
Based on estimates, the rerouting of oil and product flows due to sanctions, especially on Russia and Iran, has reinforced the need for flexible medium-capacity units.
India, as it gradually reduces imports of Russian crude, is turning to the Middle East and South America, increasing ton-miles and demand for MR and Aframax.
Simultaneously, the Arabian Peninsula is increasing its refined product output, fueling growing exports to Asia and Europe.
This dynamic supports the positive sentiment in the product tanker market and outlines further strengthening for the sizes in 2026.
More broadly, analysts estimate that the course towards 2026 will be determined by the interaction of geopolitical risks and regulatory developments.
The new emissions standards (CII, EEXI), uncertainties about future fuels, and the cost of retrofits are pushing shipowners to weigh the long-term value of their assets.
At the center of this adaptation are precisely the product tankers, with oil supply, refinery output, demand for petroleum products, and petroleum product prices in the long term contributing to this dynamic.
