- Dynacom has initiated six VLCC orders and is exploring available berths, indicating a proactive stance in the market.
- According to Poten & Partners analysis reported by Naftemporiki, VLCCs, renowned for their efficiency in crude transport, face an exceptionally low order book.
- Poten emphasizes the necessity for more VLCC deliveries annually, suggesting that the market requires more than the current “handful” of deliveries per year.
- The collapse in VLCC revenues during the pandemic, exacerbated by chartering for floating storage, contributed to the current low order book.
- Reduced interest in orders for containerships and LNG carriers has created opportunities in shipyards, particularly beyond 2027.
Analysis And Projections By Poten & Partners
Naftemporiki reported that, based on analysis by Poten & Partners, Very Large Crude Carriers (VLCCs), renowned for their efficiency in crude transportation, exhibit an exceptionally scant order book.
As analysts pointed out, the large investors in the VLCC sector are looking at an extremely low order book and according to Poten, they believe that the market needs more “than a handful of deliveries” of VLCCs each year.
“Only a few high-profile owners take the first step, we expect others to follow. We forecast the VLCC order book to more than double in 2024,” Poten noted.
VLCC Expansion Updates And Market Trends
As of 2023, Dynacom has made six orders for VLCCs, while it already has 17, and the latest reports from brokers suggest it is eyeing the market for available berths.
According to the same reports, Maran Tankers, which also has one of the largest fleets of VLCCs (according to the data, it has 33, of which it received four in 2023), is looking for berths. The Greek-flagged tanker “Antonis I. Angelicoussis”, delivered in 2023, was the first dual-fuel LNG VLCC.
Tradewinds said in a recent report that both Norwegian John Fredriksen and Capital Maritime have signed letters of intent to build four and six VLCCs respectively.
VLCC Order Book Insights And Market Dynamics
It should be noted that, according to Poten’s figures, on January 1, 2024, the VLCC order book stood at 23 vessels or 2.6% of the fleet. The corresponding order books for other tanker types are 9.9% for Suezmaxes and 12.7% for Aframaxes/LR2.
The low-order book has several explanations. The revenues of VLCCs collapsed after the first period of the pandemic when they were also chartered for floating storage.
The current Red Sea crisis has so far had less of an impact on VLCCs than on smaller tankers.
“However, we believe that the situation will change this year. VLCCs are still the most cost-effective long-haul crude oil tankers and their prices have seen a strong recovery in 2023,” Poten noted, adding: “The lower interest in orders for containerships and LNG carriers has opened positions in the shipyards, although mainly from 2027 onwards.”
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Source: en.portnews
