VLCC newbuilding's price exceeds 100 million U.S. dollars in the sluggish market

: 2021-05-24

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Sea Freight

The VLCC shipping market is currently in a downturn but the price of newbuildings of VLCC has been rising all the way and even exceeds 100 million U.S. dollars.

The shipping brokerage company SSY introduced in the latest market report that the VLCC shipping market is currently in a downturn. The freight rates seem to have fallen to the bottom line. Many routes have negative earnings, leading ship owners to take action to resist further declines in freight rates. However, in such a sluggish market, the price of newbuildings of VLCC has been rising all the way.

The ship broker said that due to the current surge in steel prices and the limited number of berths in the shipyard, the price of new ships has risen across the board. The current price of a VLCC has exceeded US$100 million.

Some ship brokers said that in the fall of last year, some major South Korean shipyards offered about $85 million for a VLCC. According to a shipping media, an executive at a large South Korean shipyard said that even the $100 million quotation for VLCC is lower than its construction cost. The offer for an Aframax has also risen from the previous US$45 million to US$53 million.

Clarkson Group’s data also shows that the prices of newbuildings of various types of ships are steadily increasing.

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VLCC newbuilding's price exceeds 100 million U.S. dollars in the sluggish market

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