Israel’s Ray Car Carriers is being linked to an order for four 7,700-ceu pure car/truck carrier newbuildings that HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced last week.
The South Korean group said a Middle Eastern shipping company had ordered four 200-metre-long vessels without disclosing the identity of the buyer or the actual value of the contracts.
But shipbuilding sources following HD KSOE’s newbuilding activities said the LNG dual-fuel ships were ordered by Ray Car Carriers.
The deal brings the total number of newbuildings that the tonnage provider has on order to eight. Its earlier four pure car/truck carrier newbuildings were ordered last year at Hyundai Samho Heavy Industries.
Sources said Ray Car Carriers is paying HMD close to $130m each for the 7,700-ceu newbuildings, which they added was a record-breaking price for the ship type.
Ray Car Carriers’ Hyundai Samho vessels were reported to cost $119m apiece — the most expensive ordered at that time.
Sources believe Ray Car Carriers has contracted the pricey vessels against contracts with undisclosed charterers.
Brokers said South Korean shipyards have been raising their prices steadily due to the rising cost of shipbuilding steel plate and labour.
They do not think the yards will lower their prices while demand for newbuildings continues to be strong. Their orderbooks are already full until the end of 2026.
Brokers said the strong price Ray Car Carriers is paying reflects the high specifications of the ships.
They think the shipowner has opted for vessels with a strong deck and ramp to load heavy vehicles. They added that the vessels will likely be fitted with fuel-saving devices such as air-bubble systems.
Ray Car Carriers’ contract has ended HMD’s eight-year contracting drought for pure car/truck carriers. The last time the Ulsan-based yard inked the ship type was in 2015 when Ray Car Carriers ordered four 7,700-ceu conventional marine-fuelled vessels for around $77.8m apiece. The quartet was delivered in 2016 and 2017.
Ray Car Carriers is scheduled to take delivery of the four newbuildings from HMD in August and November of 2026, and February and June 2027. As for the vessels at Hyundai Samho, it will be taking delivery of one ship in late 2025 and three in 2025.
According to Clarksons’ Shipping Intelligence Network, the orderbook of PCTC newbuildings stands at 156 units, of which 133 newbuildings will be constructed by shipyards in China.
Shipyards in Japan and South Korea used to dominate the building of car carriers but, in the past two years, shipping companies have been turning to Chinese shipbuilders for the vessel type due to price competitiveness and early delivery slots.
