Ray Car Carriers has boarded the VLCC newbuilding trend with a major order to expand its presence in the big tanker market.
The Israeli shipowner is understood to have snapped up four VLCCs in a swoop that sets a post-financial crisis price record in the sector.
Ray is believed to have contracted the ships at HD Korea Shipbuilding & Offshore Engineering (HD KSOE) in a deal priced at KRW 688bn ($520m).
It continues a hot run in the VLCC newbuilding market, where shipowners including John Fredriksen, Evangelos Marinakis, George Procopiou and Marina Angelicoussis have been racing to secure the limited slots on offer.
HD KSOE announced a deal on Tuesday for a series of 300,000-dwt VLCCs. It declined to disclose the buyer’s name but said the contract was signed by a European shipping company.
If confirmed, the deal will triple the number of VLCCs in Ray’s owned fleet.
Ray is primarily a car carrier tonnage provider. It currently owns the 300,000-dwt Water Tiger (ex-Hunter Freya) and Sea Lion (ex-Heroic Idun, both built 2020).
It was reported to have acquired the Daewoo-built VLCCs from Oslo-listed Hunter Group in 2022 for $95.5m each. Online database VesselsValue shows the market value of the Water Tiger and Sea Lion as $115.9m and $117.6m, respectively. Ray was reported to have chartered out the two VLCCs to Trafigura.
The HD KSOE VLCCs are priced at $130m each, which is thought to be the highest price paid for such newbuildings since the collapse of Lehman Brothers in 2008.
Mokpo-based Hyundai Samho Heavy Industries will be building the four VLCCs with delivery scheduled by December 2027.
The price compares with the $128.5m apiece paid by New York-listed DHT Holdings in February at Hanwha Ocean and Hyundai Samho.
Sources explain that with the DHT tankers being 320,000 dwt and the Ray ships smaller at 300,000 dwt, the real price difference is more notable.
DHT has penned two vessels each at Hanwha Ocean and Hyundai Samho. The company also holds an option for two additional tankers at each shipyard.
Brokers said the price of newbuildings continues to increase despite the cost of steel plate dropping by about 20% since the beginning of the year.
“The price of steel plate doesn’t pose a problem for shipyards these days … it is the rising wages of yard workers and subcontracting costs that are posing big challenges to shipbuilding companies,” one shipbuilding expert said.
“It is a seller’s market today and with early delivery slots running out, shipyards have the room to be firm in their newbuilding prices.”
The VLCC order would mark Ray’s second newbuilding play this year.
In February, it was reported to have booked two pricey pure car/truck carriers at Hyundai Mipo Dockyard. The 7,500-ceu newbuildings were reported to cost $134m each.
The price reflects that they are high-spec vessels and will be powered by LNG. Ray will take delivery of the pair by May 2028.
The two-ship deal lifts the total number of PCTC newbuildings that the company has on order at HMD to six. The other four vessels were ordered in July. The quartet were reported to be costing the company $130m each and are due for delivery between the second half of 2026 and the first half of 2027.
Ray also has four 7,500-ceu LNG dual-fuelled newbuildings being built at Hyundai Samho. It is scheduled to take delivery of one vessel in November this year and the remaining three in 2025.
HD KSOE is the holding company of HD Hyundai Heavy Industries, Hyundai Samho and HMD.
It has secured 69 vessels including one offshore facility worth $8.38bn so far this year, or 62% of its $13.5bn newbuilding target.
