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.