Hanwha Ocean announced on Dec. 2 that it has secured an order for two very large crude carriers  from a shipowner in the Oceania region. The total contract value amounts to 375.3 billion won.

The company explained that it continues to strengthen its competitiveness in the global market through accumulated VLCC construction technology and experience built over a long period, as well as the introduction of eco-friendly technologies. Since the beginning of this year, Hanwha Ocean has secured orders for a total of 43 vessels, including 19 VLCCs, 17 container ships, 6 liquefied natural gas (LNG) carriers, and 1 icebreaking research vessel. This represents approximately $7.96 billion (approximately 11.7075 trillion won) in value.

VLCC freight rates have recently rebounded, while demand for replacing aging fleets is also expanding. As oil-producing countries including the Organization of the Petroleum Exporting Countries (OPEC) Plus (+) increase crude oil production and exports, demand for crude oil maritime transportation via VLCCs is expected to grow. The increase in long-distance route demand due to ton-mile increases caused by geopolitical risks is also positive for the industry. Hanwha Ocean projected that “VLCC market conditions will continue positive trends for the time being.”

Source:Business Korea