News ID: 68016 |
Publish Date: 12:20 - 08 August 2016

VLCC newbuilding prices hit lows

Crumbling rates for large tankers and a lack of finance for new projects means the Singapore company’s order is unlikely to be the start of an order run.

VLCC newbuilding prices hit lows
According to MANA,Brokers say VLCC newbuilding prices at South Korean shipyards are now standing at $85m to $86m per ship. One details that this is the cheapest seen since 2004.
“Most people think the price is now $82m to $83m,” one VLCC player told TradeWinds. “But who is going to go to the yards and take a view in today’s market for a delivery further down the line? I honestly don’t know.”
He says that even if VLCC prices do prove attractive — some newbuilding brokers believe these levels will prove tempting for owners of 10 to 12-year-old ships considering fleet-renewal plans — there is little finance available for all but the top-tier companies.
equivalent (TCE) levels for VLCCs have slipped to rates in the high teens on the back of a wave of new deliveries, lower tonne miles and reductions in waiting time at ports.
BW Group’s confirmation of the two 318,000-dwt vessels at DSME for delivery in 2018 renewed attention on VLCC new buildings this week.
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