New York-listed tanker shipping company DHT Holdings has completed the sale of its remaining very large crude carriers (VLCCs) constructed by Chinese shipyards.
This strategic move leaves the company with a fleet comprised solely of South Korean-built vessels.
Last week, DHT Holdings confirmed the sale of the VLCC DHT Lotus, built in 2011 by Bohai Shipbuilding Heavy Industry, for nearly US$55 million. The vessel has a deadweight of 320,000.
The latest development involves the sale of DHT Lotus’ sister vessel, DHT Peony, also for nearly US$55 million. This sale aligns with VesselValue’s market estimate of US$54.47 million.
DHT Holdings becomes the first known VLCC owner to divest its entire portfolio of Chinese-built vessels. This decision follows signals from the US Government regarding potential high port fees on vessels built in China.
Following these two sales, DHT Holdings’ fleet will consist of 21 VLCCs built by South Korean shipyards. Additionally, the company anticipates the delivery of four new VLCCs from Hanwha Ocean and HD Hyundai Samho in 2026.
The US Trade Representative’s (USTR) Office conducted hearings on March 24 and March 26 concerning proposed measures resulting from the 301 investigation into alleged Chinese dominance in the maritime, logistics, and shipbuilding sectors. The proposed measures include a maximum fee of US$1 million, or US$1,000 per net tonnage, for Chinese vessel operators per vessel entering US ports. Furthermore, a service fee of US$1.5 million may be imposed on Chinese-built vessels entering US ports, based on the proportion of Chinese vessels within the fleet.
The USTR is expected to issue a final decision in the second half of 2025, taking public feedback into account. The ultimate decision on implementation will be made by US President Donald Trump.
Industry analysis suggests that most operators currently have at least one Chinese-built vessel in their fleets, which would necessitate the payment of port fees when calling at US ports. A BIMCO filing with the USTR indicated that a 300,000DWT VLCC would face charges exceeding US$100 million per port call based on the proposed US$1,000 per net tonnage fee.
As of early 2024, DHT Holdings operated a fleet of 22 VLCCs with a total capacity of approximately 3.6 million deadweight tons (DWT). Following the sale of the two Chinese-built VLCCs, DHT Holdings will have 21 VLCCs built by South Korean shipyards, with four additional newbuilds expected in 2026, bringing the future fleet size to 25. DHT Holdings received revenue of US$571.8 million in 2024.