Marine Link
Tuesday, October 24, 2017

Two Vlccs

Frontline Ltd. Sells Two VLCCs

Frontline Ltd. has sold the two VLCCs, Front Tartar and Front Tarim, both built 1993 to undisclosed buyers for an en-bloc price of $104 million. The two VLCCs were acquired in June 2000 at the price of $ 45 each and have since delivery traded successfully in the Tankers International Pool. The VLCCs will, by delivery to the new owners, have contributed, in addition to the gain on the sale, about $ 22 million to Frontline's net income in the years 2000 and 2001. The disposal of the vessels is part of Frontline's continuous fleet renewal, which includes five newbuildings to be delivered to the company in 2001 and 2002. The sale will improve Frontline's cash position with more than $40 million.

Hyundai Heavy To Build Two VLCCs

South Korea's Hyundai Heavy Industries has reportedly signed a memorandum of understanding with Overseas Shipholding Group Inc. to build two 308,000-ton VLCCs. A Hyundai official said the ship prices were confidential. The ships will be 335 meters long, 31 meters deep and 58 meters wide, and will be delivered between August 2001 and January 2002, Hyundai officials said.

CPC To Award Two VLCC Crudes

Taiwan state-owned Chinese Petroleum Corp (CPC) is likely to award two VLCCs of West African crudes in its January tender, traders said. They said the grades to be awarded were the preferred grades which included Djeno, Forcados and Kole, but details of the offers were sketchy.

HHI Gunsan Shipyard Fully Booked for its First Year

 Hyundai Heavy Industries (HHI) Gunsan shipyard is already fully booked for its first year of operation. The shipyard has taken orders for 12 vessels, one year worth of work.HHI signed a contract to build two VLCCs at the Gusan shipyard. With this order, the shipyard has 12 vessels worth a combined $1.3 billion in its orderbook. The other ten ships are Large Bulk Carriers. HHI also confirmed an additional contract for two Large Bulk Carriers to be delivered in 2011

Ocean Saver Wins Greek BWT Orders

Greek tanker operator Almi Tankers to install 'Ocean Saver' Ballast Water Treatment systems on a pair of VLCCs under construction at DSME The two 320,000 dwt vessels will join Almi’s fleet in July 2013 and November 2014 and are designed to meet highest environmental standards. Almi Tankers currently manages two Aframax LR2 vessels and three newly-built Suezmax crude oil carriers and is expecting the delivery of seven more Suezmaxes and two VLCCs by November 2014.

DHT Opts for Third VLCC Newbuild from HHI

DHT Holdings, Inc. today announced that it has declared its option to construct a very large crude carrier (VLCC) at Hyundai Heavy Industries Co., Ltd. (HHI) in South Korea with a contract price of $92.7 million, including certain additions and upgrades to the standard specification. The contractual terms are the same as for the two VLCC orders announced on December 2, 2013. DHT contracted HHI for the construction of two VLCCs with a contract price of $92

Iran Charters 550,000 ULCC

Iran has chartered a 555,000 dwt ULCC for floating oil storage to replace two VLCCs, tanker brokers said. The 1979-built Sea Giant is scheduled to be delivered in mid November for stationing off Kharg Island to replace the VLCCs Mountain Cloud (285,000 dwt) and Union (275,000 dwt) which will apparently be redelivered. The Sea Giant has been taken by the National Iranian Tanker Company (NITC) at around $15,750 a day on a monthly basis for up to 150 days, brokers said

Greek VLCC Ballast Water Treatment Contract Goes to OceanSaver

Greek oil tanker operator, Almi Tankers S.A. has chosen OceanSaver Ballast Water Treatment solutions for its VLCCs currently under construction at Korea’s Daewoo Shipbuilding & Marine Engineering Co. Ltd.   The 320,000 dwt vessels will join Almi’s fleet in July 2013 and November 2014 and are designed to exceed high environmental standards, reflecting client demand for clean & green operation

Unipec Books Two Large Cargos to Take Urals to Asia

China's Unipec is taking two very large crude carriers with around 4 million barrels of Urals crude to Asia in a move to support Russia's main export grade, traders said on Thursday. Traders said Unipec had booked two VLCCs - Front Tina and British Vintage - and will fill it with the Russian crude after actively buying smaller cargoes in the Platts window in recent days. On Thursday, Unipec bought a 100,000 Urals tonnes cargo from Eni in the Baltic at dated Brent minus $1

Navios to Expand Fleet with Two VLCCs

Image: Navios Maritime Midstream Partners

 Monaco-based tanker owner and operator Navios Maritime Midstream Partners (NAP) plans to launch syndication of a USD 205 million Term Loan B to finance the purchase of up to two very large crude carriers.    Apart from financing the purchase of up to two VLCCs from Navios Maritime Acquisition Corporation, NAP plans to use the remainder of the loan to refinance existing term indebtedness and to pay related fees and expenses.   

HMM Orders New Carriers

File Photo: Hyundai Merchant Marine

 South Korea’s largest ocean carrier Hyundai Merchant Marine (HMM) will invest USD 417.61 million in five new very large crude oil carriers (VLCCs), Reuters reported quoting company sources.   "HMM will invest 470 billion South Korean won (U.S. $418 million) in new facilities for the construction of five, 300,000 deadweight ton (DWT) VLCCs with Daewoo Shipbuilding & Marine Engineering (DSME), with an option for five more," said company sources.  

VLCC, Product Tanker Rates Headed in Opposite Directions

File Image (CREDIT: AdobeStock / (c) Carabay)

No impact on VLCC rates yet from Hurricane Harvey, even as rates for smaller product tankers double.   Freight rates for very large crude carriers (VLCCs) on Asian routes continue to sink on a glut of available tonnage as owners wait for supply disruptions caused by Hurricane Harvey to help support the market, brokers said.   Charter rates for VLCCs from the Middle East have fallen to around 36 on the Worldscale measure.  

HMM Confirms Contract With DSME For Five VLCCs

DSME CEO Jung Sung-leep (left) and HMM CEO C.K. Yoo (right). Photo: Hyundai Merchant Marine

 Hyundai Merchant Marine (HMM) announced that it has signed a formal contract with Daewoo Shipbuilding & Marine Engineering (DSME) for construction of five 300,000 dwt Very Large Crude Carriers (VLCC) with an option of five more vessels.   HMM’s letter of intent with DSME for five VLCCs (+5 option) was singed back in April 2017.    Under the agreement, DSME will build five VLCCs for HMM worth approx

Saudi Flag Raised on Bahri's VLCC Rimthan

Rimthan Registration (Photo: Bahri)

The Public Transport Authority (PTA) has raised the Saudi flag on Rimthan, one of the latest VLCCs received and owned by Bahri, a leader in transportation and logistics.   Under the supervision of PTA, the ceremony of Rimthan’s registration under the Saudi flag took place on Sunday, October 8, 2017, at Port of Ras Tanura in the Eastern Province of Saudi Arabia, and was attended by senior officials of both PTA and Bahri

Asia Tankers-VLCC Rates Under Pressure on Oversupply

File Image: CREDIT EuroNav

Charterers set to split VLCC cargoes if owners push rates higher.   Freight rates for very large crude carriers (VLCCs) are coming under pressure from a build up in ships waiting for new charters and depressed rates in smaller tanker sizes, brokers said on Friday.   "At the slightest attempt by owners to push rates higher, charterers can split the cargo into Suezmax cargoes for the same rate," an European supertanker broker said on Friday.  

DSME Bags 4 VLCCs Order from Angelicoussis

Photo: Daewoo Shipbuilding & Marine Engineering

 South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) won its second order from Maran Tankers Management (MTM), a subsidiary of  Greek shipping giant Angelicoussis Shipping Group,  to build four very large crude carriers (VLCCs).   Yonhap quoted a regulatory filing of Daewoo saying that it will deliver the 318,000-ton vessels by Aug. 20, 2019. The vessels, 336 meters long and 60 meters wide, will be powered by eco-friendly and fuel-efficient engines

VLCC Outlook Brightens Slightly

file Image: CREDIT EuroNav

Rate correction likely after low S-Oil charter drags market.   Freight rates for very large crude carriers (VLCCs) could see a small respite next week, building on the slight improvement seen in the last two days although sentiment is likely to remain pessimistic of any real recovery, brokers said on Friday.   "There was a large drop on Tuesday when South Korea's S-Oil fixed at 45.50 (on the Worldscale measure)

Modern VLCC Rates Under Pressure

File Image (CREDIT: AdobeStock / (c) Carabay)

Rates fall back after climbing earlier in the week. Overcapacity, OPEC cuts, little scrapping, summer lull weigh on market.   Owners of modern very large crude carriers (VLCCs) could see a gain in charter rates amid tightening vessel supply but freight rates, especially for older and newly delivered ships, will remain under pressure, brokers said on Friday.   That came as rates rebounded slightly earlier this week on routes from the Middle East only for them to fall back to

Overtonnage Weighs on VLCC Rates

© Jose Gil / Adobe Stock

Freight rates for very large crude carriers (VLCCs) on Asian routes from the Middle East could fall to a new low for the year next week as too many ships chase the number of available cargoes, ship brokers said on Friday.   That came as average rates from the Middle East to Asia have fallen close to last year's low.   Average rates dropped to around 32.50 on the Worldscale measure on Sept. 23, 2016, equivalent to about 42

DHT Holdings Completes Delivery of 9 VLCCs

Photo:  DHT Holdings, Inc.

 Bermuda-based DHT Holdings has completed the delivery of the nine VLCCs acquired from the BW and the contracts for the two newbuildings due for delivery in 2018 have been transferred to DHT.    DHT has a fleet of 30 VLCCs, 26 in the water and four under construction scheduled for delivery in 2018, as well as two Aframaxes. The total dwt of the fleet is 9,502,995.  The average age of the VLCC fleet is 6.8 years.    

Asia Tankers-VLCC Rates to Remain Low on Tonnage Glut

File Image: A VLCC Underway in the Suez Canala (CREDIT: Suez Canal)

Around 90 ships charter free for early September loading.   Freight rates for very large crude carriers (VLCCs) on Asian routes will remain under pressure for at least the next month, facing strong headwinds from a glut of tonnage, brokers said.   "There are around 80 to 90 ships available for charter in the first 10 days in September - that's about three ships for every cargo," a Singapore-based supertanker broker said on Friday.  

Bahri Completes Registration Of ASLAF Under Saudi National Flag

National transportation carrier aims to register all of its 39 VLCCs by end-2017. Photo: Bahri

 National Shipping Company of Saudi Arabia  Bahri announced that the Ministry of Transport under the supervision of the Public Transport Authority (PTA) has completed the registration of ASLAF, a Very Large Crude Carrier (VLCC) owned and operated by Bahri, under the flag of Saudi Arabia.    The move reinforces Saudi Arabia’s position in the global maritime industry and gives a further boost to Bahri’s efforts to register all of its VLCCs – now numbering

Tanker Shipping: Is the Oil Market Rebalancing or Not?

© Igor Yu. Groshev / Adobe Stock

Demand The one key factor to watch is the one thing that’s impossible to measure accurately on a global scale, oil stocks.   Global stocks for both crude oil and oil products rose significantly following the sharp fall in crude oil prices in the second half of 2014. But while this may seem to be in the past, it is still haunting the oil market and the oil tanker market. Demand in the tanker market is below normal levels and will only increase once the global oil stocks have been

Bahri Ship Management Complies with EU MRV

Bahri Ship Management, one of the six business units within transportation and logistics company Bahri, said it is in compliance with the submission of EU MRV (Monitoring, Reporting, Verification) plans for the full fleet, ahead of the deadline.   At present, Bahri Ship Management operates 39 VLCCs, 23 chemical tankers, 10 product tankers, fivebulk carriers and six ROCONs. Seven further VLCCs are on order, with deliveries expected to be completed by May 2018.   

Frontline Hopes to Sail through Weak Tanker Market

Photo: Frontline Management AS

 Frontline Management said tanker markets are likely to remain weak for the next few quarters due to overcapacity.   The market for Frontline's tankers will likely begin to improve in 2018, it said, as the pace of deliveries of new vessels slows and older ships are retired from the global fleet.   Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS said: "The market has been decidedly weak since the start of the second quarter of 2017

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News