VLCC newbuild orders this year already more than double 2016’s total

Temptingly low prices have already seen more than twice as many VLCC orders placed this year than in the whole of 2016.

Shipbroker Gibson notes than around 30 VLCC contracts have been signed in 2017 to date. Just 13 were inked for the whole of last year. Moreover, many owners are in advanced discussions with Asian yards for more VLCC orders, the broker reports.

“[N]ewbuild prices appear to be too attractive to resist,” Gibson maintained, pointing out that tanker newbuild values have reached their lowest levels since late 2003/early 2004.

However, access to capital remains tricky with Gibson observing that it is only those with “strong financial muscle” who are likely be in a position to capitalise on the current prices on offer.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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