New orders for tankers that transport refined fuels have plunged to their lowest levels globally in nearly a decade in 2025, with contracting for new builds dropping 86% year-over-year.
According to data released by shipping association BIMCO on September 11, the product tanker order book has shrunk by 12% since the start of the year. That marks a major shift from the building boom of 2023 and 2024, when orders for large refined fuel tankers surged, and shipyards booked their busiest backlogs since 2008. Despite a recent downturn in contracting, though, the existing order pipeline remains sizable, equal to nearly one-fifth of the current global product tanker fleet.
“This will lead to a wave of new ship deliveries over the next two years, which could push down freight rates and encourage older vessels to be retired,” said BIMCO shipping analyst Filipe Gouveia.
The average ship in the fuel tanker fleet is now 14 years old, and about 20% of total capacity comes from vessels more than 20 years old. BIMCO estimates as much as 10% of the fleet could be scrapped to make room for newer, more efficient ships. Looking ahead, only 11% of the ships currently on order will be able to run on cleaner fuels when they launch, while another 22% will be available for retrofitting down the line. Of the ships that are capable of running on clean fuels, 90% will be able to use LNG, while the remaining 10% will use methanol.
