VLCC Fleet Doubles at Chinese Ports Amid Severe Congestion

Chinese ports are experiencing unprecedented congestion in the very large crude carrier (VLCC) segment, with vessel counts doubling as shipowners struggle with extended waiting times and reduced throughput capacity. This bottleneck represents a structural challenge for global crude oil logistics, as China remains a critical import hub for petroleum products. The doubling of VLCC queues signals either demand-side pressure on crude imports, capacity constraints at terminal infrastructure, or a combination of both—each carrying distinct implications for shipping rates and supply chain reliability.

For supply chain professionals managing energy and petrochemical sourcing, this development creates immediate operational friction. Extended port dwell times increase demurrage costs, compress profit margins for tanker owners, and can delay downstream refining operations. The congestion also suggests that Chinese refineries may be operating at high utilization rates, indicating robust domestic demand—a signal for suppliers to anticipate potential import acceleration or, conversely, sudden demand swings if refineries throttle back.

The strategic implication is that port capacity planning in East Asia requires urgent reassessment. If this congestion persists beyond seasonal patterns, it may prompt shippers to explore alternative discharge ports, reroute crude flows, or negotiate longer-term demurrage provisions with charterers. Supply chain teams should monitor whether Chinese authorities implement expedited clearance protocols or whether this reflects a permanent shift in import dynamics.