Hyundai, Samsung Heavy secure $1B in VLCC orders

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Hyundai, Samsung Heavy secure $1B in VLCC orders

Hyundai Heavy Industries and Samsung Heavy Industries have clinched orders valued at a combined $1 billion to build very large crude carriers, industry sources said Tuesday.

According to the sources, Hyundai Heavy has secured an order to build two very large crude carriers, the largest type of operating cargo vessel in the world.

The deal includes an option to build two more vessels with a value estimated at $320 million.

Frontline, the world’s largest oil tanker shipping firm, is said to have placed the order, with the delivery scheduled for July 2019, they noted.

Samsung Heavy has also inked a letter of intent with an unidentified Greek shipping firm to build up to eight very large crude carriers, with the value of the contract estimated at $650 million.

Market watchers said demand for very large crude carriers has been on the rise because of a fall in their building prices.

According to the data compiled by Clarkson Research Institute, new building prices of very large crude carriers fell to their lowest level in 14 years in March.

To capitalize on the low prices, shipping firms around the globe are in a rush to order very large crude carriers to replace their aged ships.


Yonhap

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