Veson Nautical’s End-of-Year Market Report Reveals Mixed Fortunes For Global Shipping

The Veson Nautical End-of-Year Market Report reveals a turbulent 2025 for shipping, with Bulkers thriving, Tankers diverging, and newbuilding activity subdued.

The global shipping industry closed 2025 with a strikingly uneven performance across sectors, according to Veson Nautical’s End-of-Year Market Report. Continuous geopolitical disruptions, accelerating environmental regulation, and evolving trade patterns defined the year, leaving some vessel classes buoyant while others struggled under mounting pressures.

The instability in the Red Sea continued to dominate global routing strategies, forcing vessels to divert around the Cape of Good Hope. This extended voyage distances and supported ton-mile demand in certain segments, particularly Capesize Bulkers and crude Tankers. 

Meanwhile, regulatory pressures such as the implementation of FuelEU Maritime added operational complexity, with owners weighing future fuel technology choices against uncertain earnings visibility.

Asset values varied sharply by vessel type and age profile. Capesize Bulkers and mid-sized Container tonnage posted strong gains, while product Tankers and LNG carriers faced significant headwinds. 

Transaction volumes fell across most sectors as elevated asset prices and market uncertainty tempered buying appetite, though liquidity remained robust in crude Tankers and Containers.

Newbuilding activity fell sharply, marking the lowest levels since 2019, as owners adopted a cautious stance amid extended delivery slots and elevated values.

Chinese shipyards showed their dominance across multiple sectors, while demolition activity rebounded modestly from historically depressed levels. Yet, scrapping remained subdued as favourable market conditions incentivised owners to extend the trading lives of ageing tonnage.

The Bulker market was among the strongest performers. Values strengthened across most segments, with Capesize vessels leading the way. Five-year-old Capesizes of 180,000 DWT appreciated by around 23.9% year-on-year, while 10-year-old units gained 25%. Panamax vessels also recorded increases, with newbuilds rising by 6.7%. 

In contrast, Supramax and Handysize segments showed mixed results, with older tonnage experiencing declines.

China maintained its position as the world’s largest Bulker owner, with a live fleet of 2,995 vessels and an orderbook of 337 units. Greece followed with 2,379 live vessels, while Japan ranked third with 1,919. Hong Kong and Singapore trailed with smaller fleets and fewer orderbooks.

Newbuilding orders accelerated in the second half of the year, rising from 169 contracts in the first half to 227 in the second, bringing the full-year total to 396. 

Despite this uptick, contracting remained at its lowest level since 2019. Chinese owners dominated ordering with 145 contracts, accounting for 37% of all orders, while COSCO Shipping alone placed 89 Bulker orders.

Sale and purchase activity remained steady despite heightened asset values, with around 1,045 deals concluded. Capesize values reached their highest levels in 16 years, supported by sustained earnings strength from Red Sea disruptions. 

However, overall transaction volumes declined by 20% year-on-year, with Capesize activity falling from 175 transactions in 2024 to 125 in 2025. Chinese buyers remained the most active, acquiring 273 vessels, while Greek interests placed second with 168 acquisitions.

Demolition activity increased by 40% year-on-year, with 81 vessels scrapped, compared to 58 in 2024. The Ultra/Supra/Handymax sector accounted for the highest volume, followed by Post/Panamax Bulkers and Handysize vessels. 

Capesize scrapping remained minimal at six vessels. The average age of demolished ships stood at 28 years, highlighting that only the oldest and least viable units were withdrawn.

The Tanker market presented a more complex picture. Sanctions enforcement remained a defining feature, deepening the divide between compliant and shadow fleet operations. 

Older tonnage found ready buyers among non-transparent operators, while quality assets commanded premium valuations. Asian buyers dominated secondhand activity, with Chinese and Greek interests leading acquisitions.

Red Sea diversions sustained elevated ton-mile demand for crude Tankers, while product carriers faced headwinds from weakening clean petroleum products markets. 

VLCC values demonstrated resilience, with vessels aged 0–15 years appreciating between 2.5% and 7.8%. Suezmax assets posted consistent gains, while Aframax vessels also appreciated. 

In contrast, product Tankers suffered significant declines. LR1 tonnage depreciated across all age categories, with 15-year-old vessels down by 28.5%. MRs followed suit, with 15-year-old units falling by 19.1%.

Newbuilding activity shrunk sharply from record 2024 levels, with Tanker orders falling 43% year-on-year to 291. Delivery timelines stretched into 2028–2029, indicating shipyard capacity constraints and owner caution. 

Fleet renewal imperatives remained, driven by tightening environmental regulations and ageing fleets. Owners prioritised dual-fuel and ammonia-ready vessels, focusing on quality specifications over volume.

Notable contracts included four 320,000 DWT VLCCs by Maran Tankers, set to be built at Hanwha Ocean and delivered in 2028, contracted for USD 129 million each. Emarat Maritime ordered six 114,000 DWT LR2s at Hengli, scheduled for delivery in 2027–28.

The report concludes that the Bulker market demonstrated resilience despite disruptions, while Tankers experienced a split between crude and product segments. Demolition volumes increased but remained below historical averages, and newbuilding activity contracted sharply. 

In 2026, the industry faces a period of adjustment as owners navigate geopolitical uncertainties, evolving trade patterns, and the transition towards decarbonisation. Asset values and transaction activity are expected to remain sensitive to shifts in freight market sentiment and global economic conditions.

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