Newbuilding prices hit highest level since 2008

The tanker market in the week following Posidonia 2024 saw reports of an upturn in newbuilding orders, newbuilding prices and sale and purchase activity.

Newbuilding prices are soaring – Clarkson Research Services (CRS) noted, “The newbuilding price index stands at 187 points this week, the highest level since 2008, supported by firm newbuild appetite and depleted slot availability."

Depleted slot availability may be responsible for the report of a single VLCC ordered by Chandris (Hellas) for delivery from Hanwa Ocean for US$129.5M, according to BRL, which also noted the vessel was ordered with conventional propulsion and scrubbers.

The price aligns with that being quoted by shipbrokers at the moment, which is close to that being quoted for secondhand vessels, with CRS indicating a VLCC resale would be in the region of US$145.0M.

That level has yet to be tested, but Dynacom did reportedly buy two VLCC resales off-the-blocks for US$122.0M each in April 2024 from Hengli Petrochemicals, which are to be constructed at associated shipyard Hengli Shipbuilding.

Including the two VLCCs, Hengli Shipbuilding’s orderbook currently contains 73 vessels and so far, the once-bankrupt STX Dalian shipyard, which was acquired by Hengli in July 2022, has delivered one vessel under its new ownership.

Also in the newbuilding sector, orders include two 157,000-dwt Suezmax tankers placed by Atlas Marine and Vitol ordering four 111,000-dwt tankers.