As the Greek fleet is highly dependent on Chinese shipyards, the country’s shipping industry is concerned that the proposed US port fees may have a significant impact on it. It seems that some Greek shipowners have changed their previous shipbuilding practices due to this concern.
According to Riviera 19, Capital Ship Management, led by the Greek shipowner Evangelos Marinakis, is negotiating with South Korean shipbuilder Hanwha Ocean for the construction of very large crude carriers (VLCCs). Currently, the two sides have signed a letter of intent for the construction of two VLCCs. Data from Greek shipbroker Xclusiv Shipbrokers shows that the deal is worth about $125 million for a single vessel and $250 million in total, with delivery scheduled for 2027.
Capital, one of the world’s largest tanker owners, has previously focused on ordering tankers from China. According to the report, Capital is believed to be looking to build more new tankers, especially focusing on the large tanker segment. If the deal with Hanwha Ocean is finalized, it means that the shipowner may intend to shift its tanker ordering strategy in the near future. In the past few years, Capital has mainly ordered VLCCs, Suezmax and Aframax tankers from Chinese shipyards, while Korean shipyards have focused on gas carriers.
For example, Capital is ordering six LNG dual-fuel VLCCs from Chinese shipbuilder Dalian Shipbuilding Industry Corporation (DSIC) in 2024 at a cost of about $140 million each, for a total value of about $840 million, with deliveries to begin from the end of 2026 onwards. Meanwhile, another Chinese shipbuilder, New Times Shipbuilding, is building six LNG dual-fuel Suezmax tankers and four Apramax/LR2 tankers, with the Suezmax tankers scheduled for delivery by 2027.
Currently, Capital operates a fleet consisting of 32 tankers with a total deadweight of 6 million metric tons (including vessels under construction), which includes 13 VLCCs, 6 Suezmax tankers, 6 Apramax/LR2 tankers, and 7 MR/Handy product tankers. In addition to tankers, Capital is also actively involved in new shipbuilding programs for liquefied natural gas carriers, container ships, and offshore vessels.
According to the latest monthly report from Exclusive Shipbrokers, the VLCC order book as of the end of February 2025 represents approximately 10% of global deadweight tonnage. Notably, there have been no orders for new VLCCs so far this year.
VLCC deliveries are expected to continue to grow slightly this year, and will not rise sharply until 2026 and 2027. Exclusive Shipbrokers data shows that in terms of age, about 35% of the existing VLCC fleet is over 16 years old. At the same time, Greek shipowners are the most active in ordering VLCCs, accounting for about 25% of the total number of tankers under construction globally.
With the proposed U.S. port fees, the high dependence of the Greek fleet on Chinese shipbuilders has become a concern for the country’s shipping industry. According to Xclusiv Shipbrokers, both the existing Greek fleet data and order trends point to a growing risk of the Greek fleet’s dependence on Chinese shipbuilding. This risk is particularly evident in the bulk carrier and general cargo sector, especially for vessels above 10,000 dwt.
Xclusiv Shipbrokers data shows that 43% of the vessels belonging to the Greek fleet are built by Chinese shipbuilders, while 80% of its current dry bulk orders are related to Chinese shipbuilders. In absolute terms, Greek shipowners have 168 bulk carrier newbuilding programs, 135 of which will be built in China.
The container ship sector is also expected to be significantly affected. While Greek shipowners do not have a dominant market share in this sector, their dependence on Chinese shipyards remains high. Xclusiv Shipbrokers analysts pointed out: “The container shipping industry is most dependent on China’s shipbuilding industry. About 30% of the current fleet was built and delivered by Chinese shipbuilders, and 100% of the current orders (46 vessels) are also all built by major Chinese shipbuilders.”
In the tanker sector, this risky trend continues, but to a slightly lesser. with Xclusiv Shipbrokers data showing that 26% of the operational tanker fleet owned by Greece is being built in China. In addition, of the 288 tankers currently on order, 216 (75%) are being built in China.
In contrast, the gas carrier sector is expected to be least affected if the US implements port fees. Chinese shipbuliders have built only 4% of the existing Greek fleet in this sector, while Chinese shipbuliders have built only 7% of the Greek LNG/LPG orderbook (7 vessels out of 100).
Xclusiv Shipbrokers noted that “Greek shipowners may not prefer Chinese shipbuilders to build vessels of such specialized tonnage due to technical requirements, long-term relationships with specific shipbuilders and strategic considerations.”