Four New VLCCs Worth $520M Ordered by Ray Car Carriers

Ray Car Carriers has placed an order for four Very Large Crude Carriers (VLCC) with HD Korea Shipbuilding and Offshore Engineering in South Korea, amounting to a total of $520 million.

Venturing beyond its traditional vehicle carrier business, Ray Car Carriers is expanding into the supertanker market with this commitment to build four VLCCs. This follows the company's purchase of two VLCCs from the Hunter Group in 2022, each at a cost of $95.5 million.

The newly ordered VLCCs, each with a deadweight of 320,000 tons, are priced at $130 million apiece. This is slightly above the average market price for vessels of similar size, which stands at $128.5 million. The construction of these ships is to be undertaken by Hyundai Samho Heavy Industries, with delivery expected by December 2027.

This move is part of a broader trend where prominent shipping magnates are increasingly investing in VLCCs, motivated by the sector's relatively small current order book. Among these investors are DHT from Norway, which has ordered eight VLCCs in South Korea, and other notable names like John Fredriksen, Evangelos Marinakis, Tor Olav Troim, and chartering giant Trafigura, all of whom have placed their orders in China.