2.8 billion yuan! Han Hua Ocean receives 3 more VLCC orders

After its first order to return to the market at the beginning of the year, South Korea's Hanhua Ocean (formerly Daewoo Shipbuilding) has recently received three consecutive VLCC orders from two shipowners.

According to foreign media reports, Ayad Shipping, an Oman shipping company, and Chandris, a Greek shipping company, have ordered 2, 1, and 1 320000 deadweight ton VLCC from Hanhua Ocean, respectively. The new ships will be equipped with scrubbers, with each new ship costing approximately $128 million. The total cost of the three new ships is approximately $384 million (approximately RMB 2.786 billion), and they are expected to be delivered in 2026.

As a reference, current Clarkson data shows that the price of a new VLCC ship with a capacity of 315000 to 320000 deadweight tons is approximately $130 million, an increase of 3% compared to $126 million in the same period last year.

It is worth noting that the latest order is Chandris ordering VLCC for the first time in 16 years. The last time Chandris ordered a VLCC can be traced back to 2008, when the company signed a contract with Samsung Heavy Industries to build 1+1 320800 deadweight ton VLCC at a cost of up to 160 million US dollars. The new ship was completed and delivered in 2011, but due to the sluggish shipping market after the global financial crisis, Chandris abandoned the alternative order.

It is understood that Chandris was founded in 1915 and is a ship management company specializing in the management and operation of oil and chemical tankers. It has a fleet of 12 oil tankers, including 2 VLCCs, 1 Suezmax, 4 Aframax, and 5 MR tankers.

In addition to Han Hua Ocean's two VLCCs, Clarkson's data shows that Chandris currently has two 111000 deadweight ton LR2 oil tankers ordered by Guangzhou Shipbuilding International, which are expected to be delivered in 2026 and 2027 respectively; Its subsidiary Century Bulk Carriers has ordered two 63600 deadweight ton Ultraaxes bulk carriers from Zhoushan COSCO Shipping Heavy Industry, which are expected to be delivered in 2025.

Asyad is a subsidiary of the Oman national logistics service provider ASYAD Group, operating a fleet of over 80 ships with a total capacity of over 9.7 million tons. The types of ships include bulk carriers, VLCC, VLGC, refined oil tankers, LNG carriers, chemical carriers, VLOC, and container ships. Asyad previously ordered three VLCCs from its predecessor, Daewoo Shipbuilding, in 2019. As part of its fleet renewal plan, these three new ships were delivered gradually between 2020 and 2021.

In addition, according to Clarkson's data, Asyad currently has two 174000 square meter LNG ships ordered by HD Hyundai Sanhu in South Korea, with plans to deliver them in 2026.

It is understood that Hanhua Ocean was once the "strongest shipyard" in the global VLCC market, with overwhelming competitiveness and construction performance in this shipbuilding field. At present, there are a total of 925 VLCCs in operation worldwide, of which 185 are built by Han Hua Ocean, accounting for the world's largest proportion.

However, since 2022, Hanhua Ocean, along with two other shipbuilding giants in South Korea, has disappeared from the VLCC new shipbuilding market, focusing on accepting orders for larger LNG ships and container ships with higher value and stronger demand. Until February this year, Hanhua Ocean and HD South Korea Shipbuilding Ocean jointly undertook the construction contracts for a total of four 320000 deadweight ton VLCCs from DHT Holdings, a US listed crude oil shipping company, officially returning to the VLCC market.