Drop of prices for new-built VLCCs

According to Britain’s shipping and shipbuilding analysis firm Clarkson, the average newbuilding price for a very large crude carrier (VLCC) stood at US$80 million at the end of March 2017, down by US$1 million from the end of February this year. This figure is the lowest in about 14 years. After surging to US$160 million in 2008 from US$70 million in 2003, the newbuilding price of a VLCC, a segment in which South Korean shipyards established a dominant presence, has been on a downward trend primarily due to market oversupply. Recently, a large shipyard received a VLCC order from a European shipowner at a price of only US$79 million per vessel.