JP Morgan expands VLCC orderbook to 12 with new Hanwha deal

JP Morgan’s maritime investment arm has secured two additional VLCC newbuildings at South Korea’s Hanwha Ocean, pushing its total crude tanker orderbook to 12 vessels and its financial commitment to approximately $1.55 billion.

The latest contract, tied to a Bermuda-based entity, is valued at KRW356.8bn ($267 million), representing a price of roughly $133.5 million per hull. The 320,000 dwt vessels are scheduled for delivery from Hanwha’s Geoje yard in the second half of 2030, marking a significant extension of the bank’s long-term exposure to the large crude carrier segment.

The move underscores a strategic pivot toward securing high-end berth space deep into the next decade. By committing to deliveries as far out as late 2030, JP Morgan is positioning itself to capitalize on a projected supply crunch as the aging global VLCC fleet faces intensifying regulatory and replacement pressure. The pricing of $133.5 million per vessel also reflects a firming market, sitting slightly above the $132.5 million per unit paid for a similar pair ordered at the same yard in July.

JP Morgan’s current VLCC portfolio is now diversified across major Asian shipbuilders, including 10 units at Hanwha Ocean and two firm vessels at China’s Dalian Shipbuilding Industry Co (DSIC), the latter of which include options for two additional ships. The DSIC units, priced at approximately $123 million each, are slated for 2029 delivery, providing the bank with a staggered entry into the market over the turn of the decade.

For Hanwha Ocean, the deal cements its dominance in the current VLCC ordering cycle. The yard has now secured 21 VLCC orders in 2026 alone, part of a broader $8.11 billion intake this year that includes LNG carriers, containerships, and very large ammonia carriers. The concentration of VLCC orders at Hanwha suggests that Tier-1 South Korean yards are successfully capturing the premium end of the tanker renewal market, even as prices remain at historical highs.

Beyond crude tankers, the JP Morgan-backed investment group continues to broaden its maritime footprint with active newbuilding programs in the LNG, VLGC, and suezmax sectors. The scale of this VLCC campaign, however, suggests a specific conviction in the long-term fundamentals of the crude trade, prioritizing modern, fuel-efficient tonnage to meet future chartering requirements.

Source: Splash247