Tanker Shipping Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Oil Tankers, Liquid Gas Tankers, Chemical Tankers), By Mode of Transportation (Deep sea, Coastal, Inland), By Region, By Competition, 2020-2030F

Market Overview

The Global Tanker Shipping Market was valued at USD 41.3 billion in 2024 and is expected to reach USD 70.7 billion by 2030 with a CAGR of 9.2% through 2030. The global tanker shipping market is primarily driven by rising global energy demand, particularly for crude oil, refined petroleum products, and liquefied natural gas (LNG). Rapid industrialization and economic growth in emerging economies such as China and India continue to increase energy imports, supporting demand for both crude and product tankers. Additionally, the expansion of the LNG sector, driven by the global shift towards cleaner fuels, is boosting the need for LNG carriers. Geopolitical tensions, such as disruptions in the Red Sea and the Strait of Hormuz, are altering shipping routes and increasing voyage distances, thereby raising freight rates and boosting ton-mile demand.

Limited fleet growth and an aging vessel population are tightening supply, further supporting market rates. At the same time, strict environmental regulations, including the IMO 2020 sulfur cap and the upcoming carbon reduction measures, are prompting investment in eco-friendly and fuel-efficient vessels. Technological advancements such as digital navigation, AI-based route optimization, and predictive maintenance are enhancing operational efficiency. Overall, the market is being shaped by a combination of strong demand fundamentals, evolving trade patterns, regulatory pressures, and a push toward greener and smarter maritime transport solutions.

Key Market Drivers

Rising Global Energy Demand and Expanding Oil & Gas Trade

One of the most influential drivers for the global tanker shipping market is the increasing global demand for energy, particularly oil, gas, and petrochemicals. As global economies grow—especially in developing regions such as Asia-Pacific, the Middle East, and Africa—energy consumption continues to rise. Countries like China and India have significantly expanded their crude oil and LNG imports to meet industrial, transportation, and residential fuel needs. This trend boosts the demand for both crude oil tankers and product tankers that transport refined fuels like diesel, jet fuel, and gasoline. 

Simultaneously, as global oil production increases in regions like the United States (Permian Basin), the Middle East (Saudi Arabia, UAE, Iraq), and West Africa, long-haul transoceanic trade routes are becoming more active. This results in higher “ton-mile” demand—an essential metric for tanker operators—because of the longer distances traveled between producers and end markets. 

Moreover, the growing petrochemical trade, including the movement of naphtha and other feedstocks, supports the demand for chemical tankers. Many oil-exporting nations are also shifting toward value-added exports like refined products and chemicals, increasing the complexity and frequency of tanker shipments.

Rising energy security concerns are also leading to increased strategic petroleum reserves (SPRs) in many countries, further amplifying demand for storage and delivery via tankers. In addition, fluctuations in global oil prices often result in “floating storage” strategies, where tankers are used to store oil temporarily, tightening market capacity and boosting freight rates.

In essence, the continuous growth in energy consumption, coupled with evolving international trade flows, is generating sustained momentum for the tanker shipping market, ensuring consistent demand across different tanker segments including crude, product, LNG, and chemical vessels. Global energy demand grew by over 2% in 2023, with fossil fuels still accounting for around 80% of total energy consumption. Oil consumption reached approximately 102 million barrels per day (bpd) in 2023, exceeding pre-pandemic levels. Natural gas trade via pipelines and LNG rose to more than 1,100 billion cubic meters (bcm) globally in 2023. India’s oil demand reached nearly 5 million bpd in 2023, making it the third-largest oil consumer globally.

Environmental Regulations and Fleet Modernization

Environmental regulations are playing a pivotal role in reshaping the global tanker shipping market. One of the most significant shifts came with the implementation of the IMO 2020 regulation, which capped sulfur emissions from marine fuels at 0.5%, down from the previous 3.5%. This has forced tanker operators to either switch to low-sulfur fuel oil (LSFO), install exhaust gas cleaning systems (scrubbers), or invest in dual-fuel engines capable of using cleaner fuels like LNG. Compliance with these regulations has led to increased operational costs but has also opened opportunities for shipbuilders and technology providers offering compliant solutions.

Looking ahead, the International Maritime Organization (IMO) is implementing further environmental mandates aimed at reducing the shipping industry’s carbon footprint, including the Carbon Intensity Indicator (CII) and the Energy Efficiency Existing Ship Index (EEXI). These regulations will require vessels to meet stricter energy efficiency standards, prompting significant investment in modern, fuel-efficient, and eco-friendly tankers.

The push for decarbonization is also encouraging the development of alternative propulsion technologies such as ammonia, methanol, and hydrogen-fueled ships. As shipowners anticipate long-term regulatory pressure, many are investing in next-generation tankers with lower emissions and smart technologies for fuel optimization, emissions tracking, and predictive maintenance.

These shifts are creating a “two-tier market”: modern, compliant vessels enjoy higher charter rates, while older, non-compliant ships face operational restrictions or early scrapping. The aging fleet—especially among crude oil tankers—has limited the availability of compliant tonnage, increasing freight rates and improving margins for owners with upgraded fleets.

In summary, stricter environmental regulations are acting as a catalyst for innovation, investment, and operational restructuring in the tanker shipping industry. They are driving fleet modernization, encouraging the adoption of sustainable practices, and contributing to a more resilient and competitive global tanker shipping market.

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Key Market Challenges

Volatility in Oil Prices and Global Economic Uncertainty

One of the primary challenges facing the global tanker shipping market is the inherent volatility in crude oil prices and broader economic instability. Tanker demand is directly linked to oil production, consumption, and trade flows. When oil prices are high, producers ramp up output, increasing seaborne trade volumes and boosting tanker utilization. Conversely, during low-price periods or oil market disruptions—such as those caused by geopolitical instability, OPEC+ production cuts, or sudden demand drops—tanker demand weakens significantly.

This price sensitivity makes tanker shipping companies highly vulnerable to external macroeconomic shocks, such as recessions, financial crises, or pandemics like COVID-19. During downturns, global energy consumption declines, leading to reduced refinery activity, lower cargo volumes, and idle tanker capacity. For example, in 2020, while some tankers were temporarily repurposed as floating storage due to oversupply, many others saw utilization and day rates plummet.

Moreover, inflationary pressures, rising interest rates, and currency fluctuations increase the cost of operations, financing, and ship maintenance. Shipping companies operating internationally also face the risk of freight payment defaults or delayed shipments due to financial distress in importing nations.

Compounding the problem is the uncertainty in forecasting market demand, making it difficult for tanker operators to plan fleet expansion, retrofit investments, or route optimization. Freight rates often fluctuate unpredictably, and spot market exposure adds to income instability.

In summary, the tanker shipping market is cyclically exposed to oil market dynamics and economic health. These factors create an unpredictable business environment, making it critical for shipping firms to develop resilient strategies, diversify routes, hedge fuel and rate exposure, and maintain financial discipline to weather prolonged downturns.

Environmental Compliance and Decarbonization Pressures

A major structural challenge for the global tanker shipping industry is the intensifying regulatory pressure to reduce greenhouse gas emissions and improve energy efficiency. The International Maritime Organization (IMO) has introduced strict mandates such as the IMO 2020 sulfur cap, which limits sulfur content in marine fuels to 0.5%. While this has improved environmental performance, it has also significantly increased operational costs as shipowners invest in expensive low-sulfur fuels, exhaust scrubbers, or dual-fuel systems.

More importantly, the IMO’s 2050 decarbonization targets require a 50% reduction in total greenhouse gas emissions from international shipping compared to 2008 levels. To comply, tanker operators must embrace fleet modernization, involving alternative propulsion systems (LNG, ammonia, methanol), carbon capture technologies, and advanced hull designs for better fuel efficiency. These technologies demand massive capital investment, which is challenging, especially for smaller or mid-sized operators with limited financial capacity.

Additionally, new indices such as the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) are pressuring existing fleets to meet performance standards or face operational restrictions. Non-compliant vessels may be forced to reduce speed (slow steaming), retrofit engines, or exit the market, leading to supply disruptions and costly downtime.

The uncertainty around future fuel infrastructure availability and cost parity further complicates investment decisions. While alternative fuels are being promoted, global availability, bunkering infrastructure, and safety regulations are still evolving. Many shipowners are hesitant to invest in a fuel system that may not be viable long-term, creating a technological risk.

In summary, while environmental regulations are pushing the industry toward sustainability, the financial burden, technological ambiguity, and operational disruptions they cause represent a formidable challenge. Successfully navigating this transition will require strategic planning, partnerships, and access to green financing to remain competitive in the long term.

Key Market Trends

Shift Toward Fleet Modernization and Eco-Efficient Tankers

A significant trend transforming the global tanker shipping market is the accelerating modernization of tanker fleets driven by environmental compliance, fuel efficiency goals, and evolving charter requirements. Shipowners are increasingly retiring older vessels and investing in new-generation eco-tankers equipped with energy-saving technologies such as optimized hull designs, dual-fuel engines, air lubrication systems, and exhaust gas cleaning systems (scrubbers). These vessels offer not only reduced greenhouse gas emissions but also lower operational costs, giving them a competitive edge in securing high-paying charters.

This modernization trend is largely a response to stricter environmental regulations from the International Maritime Organization (IMO), including the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII), which came into effect in 2023. Shipowners are under increasing pressure to ensure their vessels meet compliance standards or face penalties, reduced operational flexibility, or diminished market value.

In addition, charterers—particularly large oil companies and commodity traders—are increasingly preferring eco-compliant vessels to align with their own sustainability goals. This is creating a two-tier market, where modern, energy-efficient tankers command premium freight rates while older ships face limited demand or are sold for scrap.

The global push for decarbonization is also promoting investment in alternative fuels such as LNG, methanol, ammonia, and even hydrogen. Although still in early stages, several pilot projects are underway, and shipbuilders are offering dual-fuel-ready or fuel-flexible designs to future-proof newbuilds. This trend is not only shaping the orderbook but also influencing trade finance and ship valuations, as environmentally superior tankers are seen as lower-risk, long-term assets. Overall, the fleet modernization wave is expected to gain momentum, driving technological innovation and reshaping the competitive landscape of the tanker shipping market over the next decade. Over 30% of the global tanker fleet is more than 15 years old, prompting increased investment in newer, more efficient vessels. Orders for dual-fuel and LNG-powered tankers rose by over 40% in 2023, reflecting the industry's move toward lower-emission shipping. New eco-efficient tankers can reduce fuel consumption and CO₂ emissions by up to 25–30% compared to older models. As of 2024, nearly 20% of new tanker orders are designed to run on alternative fuels such as LNG, methanol, or ammonia. The average age of tankers in the global fleet is approximately 12 years, with replacement demand accelerating due to stricter emissions regulations.

Rising Ton-Mile Demand Due to Changing Trade Patterns

Another dominant trend reshaping the global tanker shipping market is the increasing ton-mile demand, fueled by changing trade routes and evolving geopolitical dynamics. Ton-mile is a key metric in shipping, representing the volume of cargo transported multiplied by the distance it travels. Even if crude oil or refined product volumes remain steady, longer voyage distances significantly boost tanker demand and fleet utilization.

Recent years have seen major shifts in traditional trade flows. For example, Western sanctions on Russian oil following the Ukraine conflict have forced Russian exports to be redirected to more distant markets such as China and India, increasing voyage lengths. Simultaneously, European countries are diversifying their energy sources by importing more oil and LNG from the U.S., the Middle East, and West Africa, further extending shipping distances and duration.

Similarly, the growth of Asia as a global energy consumer is leading to increased crude oil imports from far-off regions, especially Latin America and the U.S. Gulf Coast. The trend toward dispersed global refining—with refining capacity expanding in Asia and the Middle East—also necessitates long-haul shipments of both crude oil and refined products.

Additionally, disruptions in key maritime routes, such as the Red Sea, Panama Canal, and Suez Canal, due to conflicts, droughts, or congestion, are forcing vessels to take longer alternative routes (e.g., via the Cape of Good Hope). These detours extend voyage times and increase fuel consumption, effectively tightening global tanker supply.

This rise in ton-mile demand is pushing freight rates higher and incentivizing investments in larger tankers like VLCCs (Very Large Crude Carriers) and Suezmax vessels that offer economies of scale. As trade realigns based on shifting geopolitics and energy security strategies, the trend toward increased ton-miles will remain a long-term growth engine for the tanker shipping industry.

Segmental Insights

Mode of Transportation Insights

Deep Sea segment dominated the Tanker Shipping Market in 2024 and is projected to maintain its leadership throughout the forecast period, due to its crucial role in facilitating long-haul international trade of crude oil, refined petroleum products, and liquefied natural gas (LNG). Unlike short-sea shipping, which covers regional transport, deep-sea tanker vessels operate across vast oceanic routes, connecting major oil-producing regions such as the Middle East, the United States, and West Africa with high-demand markets in Asia-Pacific and Europe. The segment benefits from economies of scale, especially through the use of Very Large Crude Carriers (VLCCs) and Suezmax tankers that can carry massive volumes of cargo over intercontinental distances.

Global energy demand, particularly in emerging economies, continues to drive the growth of this segment, as these countries increasingly rely on energy imports to meet consumption needs. Moreover, geopolitical shifts and trade realignments—such as sanctions on Russian oil and increased exports from the U.S.—have further extended voyage distances, amplifying the reliance on deep-sea tankers. Additionally, strategic petroleum reserves and the global refining industry's evolving footprint have boosted long-distance shipping demand.

With growing ton-mile requirements and the need for high-capacity, fuel-efficient vessels, the deep-sea segment remains essential to the stability and expansion of global energy logistics, solidifying its dominance in the tanker shipping market.

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Regional Insights

Largest Region

North America dominated the Tanker Shipping Market in 2024 and is anticipated to maintain its leadership throughout the forecast period, primarily due to its robust oil and gas production and its expanding role in global energy exports. The United States, in particular, has become one of the world’s leading crude oil and liquefied natural gas (LNG) exporters, thanks to the shale boom and advanced extraction technologies. This has significantly increased the region's contribution to international seaborne energy trade. With export terminals along the Gulf Coast, North America maintains strong maritime trade routes with high-demand regions such as Asia-Pacific and Europe. These long-haul shipments contribute substantially to global ton-mile demand, a key metric in tanker shipping.

Moreover, North America's well-developed port infrastructure, coupled with investment in modern and energy-efficient tankers, enhances its competitiveness in international shipping. The region also benefits from political stability and stringent safety and environmental regulations, which ensure reliable and sustainable maritime operations. Additionally, the shift in global oil trade dynamics—such as European countries seeking alternatives to Russian energy supplies—has further boosted demand for North American crude and LNG.

The strategic location, increasing energy output, and technological advancement in fleet management have positioned North America as a key player in shaping the global tanker shipping landscape. As global energy demand continues to grow and trade routes evolve, North America’s influence in the tanker shipping market is expected to remain strong in the coming years, supported by ongoing investments in infrastructure and fleet modernization.

Emerging Region

South America is the emerging region in the Tanker Shipping Market, driven by increasing crude oil production, export activities, and investment in maritime infrastructure. Countries like Brazil, Venezuela, and Guyana have become central to this growth due to their vast offshore oil reserves and rising output levels. Brazil, in particular, has been expanding its deepwater and pre-salt oil fields, leading to a surge in crude exports, primarily to Asia and Europe. This has resulted in greater demand for tanker vessels capable of long-haul voyages, enhancing the region's importance in global shipping lanes.

In addition, the development of new port facilities and upgrades to existing terminals across the continent are improving loading capacities and enabling accommodation of larger vessels like Suezmax and VLCCs. These improvements are critical for handling growing export volumes efficiently and competitively. Furthermore, South America's geographical positioning between the Atlantic and Pacific oceans offers strategic connectivity for global trade, reinforcing its role in energy logistics.

As global energy demand continues to shift, particularly towards Asia, South America’s contribution as a supplier is gaining momentum. Political efforts in countries like Brazil and Guyana to attract foreign investment in oil exploration and production are also encouraging tanker operators to expand operations in the region. With rising export potential, supportive government policies, and improving infrastructure, South America is well-positioned to become a key growth driver in the global tanker shipping market over the coming years.

 Recent Developments

• In May 2024, Seattle-based Saltchuk completed its acquisition of Overseas Shipholding Group (OSG), a leading U.S. tanker operator. OSG manages a fleet of 24 vessels, primarily engaged in transporting crude oil and petroleum products along U.S. coastal routes. This acquisition significantly strengthens Saltchuk’s presence in the domestic maritime transportation sector, particularly within the U.S. Jones Act market, which mandates that goods transported between U.S. ports be carried on ships that are U.S.-built, U.S.-owned, and U.S.-crewed.
• In June 2024, South Korea’s Hanwha Group acquired Philly Shipyard, one of the United States’ key shipbuilding facilities specializing in Jones Act-compliant tankers. The deal, valued at USD 100 million, aims to enhance Hanwha’s shipbuilding capabilities in the U.S. and support future demand for domestically built vessels. With this move, Hanwha positions itself to play a more active role in the U.S. maritime and energy logistics sectors, while contributing to the strengthening of the American shipbuilding industry amid growing emphasis on fleet modernization and national energy security. 
• In May 2025, India, the world’s third-largest oil importer, announced plans to invest 850 billion rupees (approximately USD10 billion) by 2040 to acquire 112 crude oil tankers. The initiative aims to strengthen the country’s energy security by reducing dependence on foreign-chartered vessels. The shipping and petroleum ministries are collaborating to modernize and expand the aging fleet operated by state-owned oil companies, which currently rely heavily on international shipping firms for crude transportation.

Key Market Players

• Euronav NV
• Frontline Ltd.
• Teekay Corporation
• Maran Tankers Management Inc.
• Scorpio Tankers Inc.
• MISC Berhad
• NYK Line (Nippon Yusen Kabushiki Kaisha)
• Tsakos Energy Navigation Ltd.

Report Scope:

In this report, the Global Tanker Shipping Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Tanker Shipping Market, By Type:

o   Oil Tankers

o   Liquid Gas Tankers

o   Chemical Tankers       

• Tanker Shipping Market, By Mode of Transportation:
  

o   Deep sea

o   Coastal

o   Inland         

• Tanker Shipping Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   South America

§  Brazil

§  Colombia

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Tanker Shipping Market.

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Company Information

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