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Thursday, March 28, 2024
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4 Vlccs News

07 Mar 2024

Sharp Uptick Seen in Crude Tanker Ordering

© Carabay / Adobe Stock

Contracting activity for for crude tanker newbuilding has risen sharply to start 2024, driven by a steep rise in orders for very large crude carriers (VLCC), according to shipping organization BIMCO.In the first two months of 2024, crude tanker newbuild contracting surged to 7.4 m DWT, a 490% leap y/y. Notably, the 19 VLCCs ordered in January and February is more than was ordered for the entirety of 2023.Freight rates for crude tankers spiked at the start of the war in Ukraine, and they have largely stayed strong since, said Filipe Gouveia, shipping analyst at BIMCO.

28 Feb 2024

DHT Orders Four VLCCs

© Antony / Adobe Stock

DHT Holdings announced it has entered into agreements to build four very large crude carriers (VLCC) in South Korea for delivery between April and December 2026.Two of the large tankers will be constructed at Hyundai Samho Heavy Industries and the other two at Hanwha Ocean (formerly known as Daewoo Shipbuilding & Marine Engineering), for an average price of $128.5 million. The contracts include options for an additional four vessels that can be delivered during the first half of 2027.The vessels have been ordered to Super Eco-designs and have carrying capacity of about 320,000 metric tons.

23 Feb 2024

Hanwha Ocean Secures $258M Order for Two VLCCs

(Credit: Hanwha Ocean)

South Korean shipbuilder Hanwha Ocean has received an order to construct two very large crude carriers (VLCCs) for a shipping company in Oceania.The order for VLCCs, worth $257.8 million (342 billion won), is the first such order for Hanwha Ocean in the last three years. This is also the highest price for the vessels in 16 years, since the 2008 global financial crisis, the company said.The ships will be built at the Geoje plant and delivered to the shipowner in the first and second half of 2026…

14 Feb 2024

Oil Production, Chinese Buying Buoys Brazil Crude Exports 19%

Chart courtesy BIMCO

“The reshaping of global crude tanker markets continued in 2023. In 2022, sanctions shifted Russia’s exports from Europe to Asia while OPEC production cuts in 2023 increased the Americas’ share of exports. Brazil’s oil production increased by 12% year-on-year in 2023 while crude tanker exports rose 19%,” said Niels Rasmussen, Chief Shipping Analyst at BIMCO.According to the International Energy Agency (IEA), Brazil’s oil production reached 3.49 million barrels per day (mbpd) in 2023, up from 3.12 mbpd the year before.

13 Feb 2024

Four Japanese Companies Form Consortium for Eco-Friendly VLCCs Concepts

Eco-Friendly VLCC Concept (Credit: NYK)

Idemitsu Tanker, IINO Kaiun Kaisha (IINO Lines), Nippon Yusen Kabushiki Kaisha (NYK), and Nihon Shipyard have established a consortium to conduct joint research and development of design concepts for Malacca Max-type very large crude oil carriers (VLCCs).The design concepts, including machinery and environment equipment, will be developed with a view of reducing greenhouse gas (GHG) emissions, the consortium that was initiated by Idemitsu Tanker said.Aiming to reduce emissions by 40% or more compared to previous levels…

26 Jan 2024

AET Names New LNG Dual-fuel VLCC

(Photo: AET)

AET, a member of the MISC Group, held a naming ceremony in Singapore for its latest liquefied natural gas (LNG) dual-fuel very large crude carrier (VLCC), Eagle Veracruz.The Singapore-flagged 300,000 dwt tanker was named by Singapore’s Minister for Sustainability and the Environment (MSE) Grace Fu, who is also the Lady Sponsor of the vessel. The ceremony, which was held at the PSA Keppel Terminal, also saw attendance by Teo Eng Dih, Chief Executive of Maritime and Port Authority of Singapore (MPA) and senior officials from MSE…

22 Jan 2024

New Tug Enters Service for Signet Maritime

Forepeak structure, 3D design and as-built (Photo: Robert Allan Ltd.)

Signet Sirius, the first of two ART 92-32W Rotortugs was recently delivered by Signet Maritime at their Pascagoula Shipbuilding and Repair facility. This is the first ART Rotortug that Signet has built and operated in their fleet. Designed by Robert Allan Ltd. in collaboration with RotorTug BV, the Advanced Rotortugs (ART) incorporate the patented triple Z-drive Rotortug propulsion layout, featuring omni-directional maneuverability, and the benefits of a fully redundant and precise propulsion machinery configuration.

17 Jan 2024

Hunter Group Signs Charter for Eco-Design VLCC

© Jouni Niskakoski / Adobe Stock

Norwegian shipowner Hunter Group has entered into a three-year back-to-back charterparty for an eco-design and scrubber fitted Very Large Crude Carrier (VLCC) with an internationally renowned counterparty.Delivery of the 2016-built vessel is expected to take place during March/April 2024.The company will charter the vessel in at a fixed rate of $51,000 per day, before subsequently chartering the vessel out on a floating index-linked spot rate contract."This agreement is yet another…

12 Jan 2024

Frontline Sells Its Five Oldest VLCCs

© Björn Wylezich / Adobe Stock

Frontline announced it has reached a deal to sell its five oldest very large cruse carriers (VLCC) to an undisclosed buyer for an aggregate net sale price of $290 million.The vessels, built in 2009 and 2010, are expected to be delivered to the new owner during the first quarter of 2024.After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $207 million, and the Company expects to record a gain in the first quarter of 2024 in the range of approximately $68 million to $76 million…

10 Jan 2024

Surging VLCC Rates Impact US Crude Oil Shipments to Asia

© Andriy Sharpilo / Adobe Stock

The economic incentive to import oil from the U.S. Gulf Coast to Asia has closed as the cost of booking supertankers on the route has surged amid a jump in bookings for the vessels, traders said this week.With the arbitrage for U.S. shipments closed, Asian refiners may make up some of the difference with similar Middle Eastern crude oil after top regional producer Saudi Arabia cut their sales prices for February, which is expected to carry over to other regional crudes. The spur…

22 Nov 2023

MAN Engine Ordered for World's First Methanol-fueled VLCC

(Image: MAN Energy Solutions)

China Merchants Energy Shipping (CMES), the Shanghai-listed shipping giant and daughter company of China Merchants Heavy Industry (CMHI), has ordered an MAN B&W 7G80ME-LGIM (-Liquid Gas Injection Methanol) main engine in connection with the construction of a very large crude carrier (VLCC). The first such dual-fuel methanol order for the ship type, Dalian Shipbuilding Industry Co (DSIC) will construct the vessel with delivery due by April 2026.CSE (China Shipbuilding Industry Corporation Diesel Engine Co.…

02 Nov 2023

Euronav Doubles Q3 Core Profit Yr/yr; Beats Estimates

Credit: Euronav

Belgian oil tanker firm Euronav on Thursday beat analysts' expectations and more than doubled its core profit in the third quarter from the same year-ago period, helped by higher sales and high freight rates.The market for very large crude carriers (VLCC) "has improved due to increased frequency of loadings from higher USA crude production", Euronav said in a statement. Although freight rates fell modestly during the quarter, they still remained strong when compared to historic averages since 1990, Euronav added.

27 Oct 2023

LR Grants AIP for LNG Dual-fuel VLCC Design

(Image: Deltamarin)

GTT and Deltamarin have obtained an approval in principle (AIP) from Lloyd's Register for their design of a dual-fuel very large crude carrier (VLCC), which incorporates a 12,500m3 liquefied natural gas (LNG) tank equipped with GTT's Mark III Flex membrane technology.The concept developed by GTT aims at maximizing vessel autonomy thanks to a large-capacity tank, giving shipowners and charterers the benefit of longer trade navigation with a single refueling operation, without any…

13 Sep 2023

US Dirty Tanker Export Demand Jumps

Source: BIMCO

During the first eight months of 2023, US dirty tanker export demand increased 33% year-on-year while the global dirty tanker exports increased only 5%. Measured in deadweight tonne miles, US exports now account for 14% of global dirty tanker demand, says Niels Rasmussen, Chief Shipping Analyst at BIMCO.US oil production has increased since 2013 while US refinery runs peaked before the COVID pandemic. This has allowed dirty tanker exports to increase from 0.4 million barrels per day (mbpd) in 2016 to 3.5 mbpd during the first eight months of 2023.

05 Sep 2023

ABS, GTT and DHT Developing LNG-fueled VLCC Design

From left: Philippe Berterottiere, Chairman and CEO, GTT; John McDonald, ABS President and COO; and Svenn Magne Edvardsen, Managing Director, DHT; to sign a JDP at Gastech 2023. (Photo: ABS)

ABS, Gaztransport & Technigaz (GTT) and DHT Holdings, Inc. signed a joint development project (JDP) to optimize a new, very large crude carrier (VLCC) with liquified natural gas (LNG) propulsion that meets Class and statutory requirements.The dual fuel vessel is intended to provide flexibility for operations and to reduce greenhouse gas (GHG) emissions.The agreement—signed at the Gastech 2023 conference in Singapore—will see ABS, GTT and DHT focus on optimizing the VLCC design…

28 Aug 2023

AET Delivers LNG Dual-Fuel VLCC to Shell

EAGLE VELLORE: AET's newest LNG dual-fuel VLCC Eagle Vellore was named today in Malaysia. Image courtesy AET

AET delivered its newest vessel, the first of three Very Large Crude Carrier (VLCC) powered by dual-fuel liquefied natural gas (LNG) engines, on long-term charter to Shell Tankers (Singapore) Private Limited.The Malaysian-flagged Eagle Vellore was named at a ceremony at the MMHE Pasir Gudang yard, attended by the Deputy Minister of Transport, Malaysia and other Malaysian government officials. The naming of the 300,000 dwt tanker in Malaysia marks an important milestone for AET…

10 Aug 2023

Pavilion Energy, CNOOC Complete First Bunker Delivery to LNG-powered VLCC

Credit: Pavilion Energy

Singapore's Pavilion Energy and China's CNOOC Gas and Power Group completed their first liquefied natural gas (LNG) ship-to-ship bunker operation for a very large crude carrier (VLCC) at China's Guangzhou port, the companies said on Thursday.A total of 2,800 metric tons of LNG was delivered from CNOOC's LNG bunker vessel Hai Yang Shi You 301 to the VLCC Maran Dione, owned by Angelicoussis Group's Maran Tankers Management (MTM), the companies said in a joint statement.The bunker operation came after Pavilion Energy…

22 Jun 2023

Saudi Arabian Crude Oil Exports Fall 12%

“By agreeing to an additional voluntary production cut within OPEC (Organization of the Petroleum Exporting Countries) of 500,000 barrels per day in May and announcing a further independent production cut of 1,000,000 barrels per day in July, Saudi Arabia is aiming to reduce excess supply and support prices,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO.According to the EIA (U.S. Energy Information Administration), Saudi Arabian oil production fell to 9.9 mbpd (million barrels per day) in May…

21 Jun 2023

Transportation Recovery Fund joins Tankers International VLCC Pool

Charlie Grey, CEO of Tankers International. Image courtesy Tankers International

Tankers International, the world’s largest shipping pool for VLCCs, announced that Transportation Recovery Fund (TRF) operated vessel the TRF Horten has joined its specialist VLCC Scrubber Pool.The TRF Horten (297,638 DWT / Built 2018) was delivered to Tankers International earlier this month. The total size of the Tankers International fleet now stands at 64 VLCCs, and the specialist Scrubber Pool has increased in size to 36 vessels.The addition of the TRF Horten has reduced the average age for the scrubber pool to seven years…

23 May 2023

Shell Cuts Oil Imports at Singapore Refinery Amid Mooring Repairs

© ake1150 / Adobe Stock

Shell has cut crude oil imports at its Singapore refinery this month and is relying on smaller tankers after extending repairs at its single buoy mooring (SBM) facility to June, according to government notices and shipping data.The company is moving crude from Very Large Crude Carriers (VLCC) onto smaller Aframax tankers through ship-to-ship transfers before discharging them at another jetty on Pulau Bukom, the island south of Singapore where the refinery is located, shipping…

11 May 2023

Tanker Firm Euronav Beats Q1 Profit Estimates, Proposes Higher Dividend

©Euronav

Belgian oil tanker and storage operator Euronav reported better-than-expected first-quarter revenue and core earnings on Thursday, supported by an improvement in freight rates, and proposed raising its dividend. "The counter seasonal strength recorded in Q1 underpins our view that strong and durable drivers are in place to continue a multi-year upcycle in large crude tanker freight markets," CEO Hugo De Stoop said in an earnings statement. Euronav, one of the largest oil tanker companies in the world…

20 Jan 2023

Euronav VLCCs Named at Hyundai Samho

(Photo: Euronav)

South Korean shipbuilder Hyundai Samho Heavy Industries on January 10 hosted a naming ceremony for a pair of new very large crude carriers (VLCC) it is constructing for Belgian shipowner Euronav.The Cassius and Camus are being built as liquefied natural gas (LNG) ready with the ability to cut CO2 emissions compared to current market standards. Each is also fitted with exhaust gas scrubber technology and a ballast water treatment system.The 299,158 dwt, 238-meter-long Cassius joined the Euronav fleet on January 11, and Camus is still under construction.

13 Jan 2023

Russia Shipping Oil to Asia in Chinese Supertankers

© vladsv / Adobe Stock

At least four Chinese-owned supertankers are shipping Russian Urals crude to China, according to trading sources and tracking data, as Moscow seeks vessels for exports after a G7 oil price cap restricted the use of Western cargo services and insurance.China, the world's top oil importer, has continued buying Russian oil despite Western sanctions, after Russian President Vladimir Putin and Chinese leader Xi Jinping launched what they called a no-limit partnership before the war in Ukraine.The sources said a fifth supertanker…