TSHD Market Report Q1 2026: Prices Up 12% as Dredging Demand Surges

Overview

The Q1 2026 TSHD market continued the upward trend that began in late 2025. Average transaction prices for TSHDs in the 5,000–10,000m³ range increased by 12.3% compared to Q4 2025, reaching an average of $16.8M per vessel.

This surge is primarily driven by three factors: accelerating coastal infrastructure projects in the UAE and Saudi Arabia, increased demand from Southeast Asian port expansion programs, and a limited supply of well-maintained vessels with current class certificates.

"We're seeing buyer competition for TSHDs that we haven't seen since 2019. Vessels with clean survey records are receiving multiple offers within days of listing."

Key Market Drivers

• Middle East mega-projects: NEOM, Jubail 2, and Abu Dhabi coastal development are all active and procuring dredging capacity.
• SE Asia port expansion: Indonesia, Vietnam, and the Philippines have $14B+ in port infrastructure scheduled for 2026–2028.
• Limited newbuild capacity: Major shipyards have backlogs extending to 2028, pushing buyers to the second-hand market.
• Emission compliance costs: IMO 2026 regulations are increasing the premium on newer, compliant vessels.

Price Trends by Segment

The most significant price increases were in the mid-range segment (5,000–10,000m³), where supply constraints are most acute. Smaller TSHDs (<3,000m³) saw more modest gains of 6–8%, while the large segment (>15,000m³) remained relatively stable due to lower transaction volume.

Outlook for Q2 2026

We expect prices to remain elevated through Q2, with potential for further 5–8% appreciation in the mid-range segment. The key factors to watch are the pace of Middle East project procurement and whether any newbuild cancellations add capacity to the secondhand market.

Buyers should act quickly on well-priced listings, particularly for vessels built after 2015 with current special survey. Sellers in this category can expect multiple inquiries and competitive offers.