Japanese yards unveil fresh VLCC orders

Appetite for large tankers remains firm as shipyards pull in order for trio during August.

News ID: 80206

Date: 15 September 2018 - 10:15

Japanese shipyards won orders for three VLCCs last month, continuing the firm trend of VLCC ordering seen earlier this year.

Confirmation of the tanker orders came in the latest monthly report from the Japan Ship Exporters’ Association (JSEA).

Mitsui bags order for post-panamax bulker trio

The trade association does not name the shipyards or owners involved in the orders. Neither did it give prices of delivery dates.

The last reported VLCC orders contracted in Japan were reportedly placed by the Navios Group at Imabari Shipbuilding, according to Clarksons.

According to the UK shipbroker, average VLCC newbuilding prices are currently at $90m, increasing by 2.7% over the past three months.

The three VLCCs helped Japanese shipyards to double their ship export orders for August to 1.5mgt, compared to a year ago.

JSEA member yards booked export orders for a total of 21 ships in August, with the bulk of the orders made up of bulkers in numerical terms.

Orders comprised three post-panamax bulkers, three panamaxes, four handymaxes and two coal carriers. There were also orders reported for four containerships as well as one product carrier and a single chemical tanker.

For the financial year-to-date – April to August – JSEA member yards have reported orders for 81 ships of 3.6mgt.

Half of these are due for delivery in FY2019 with a further 47% due to emerge from yards in FY2020 and the remaining 2.5% in FY2021.

At the end of August, JSEA said its members’ backlog of work stood at 502 vessels of just over 26mgt compared with 27.4mgt at the end of August last year.

JSEA members include some 22 shipbuilding groups as well as aa of Japan’s major trading houses, according to its website