Tanker Price Fall Helps Global Energy Make Savings

7 September 2010 (Last Updated September 7th, 2010 18:30)

A decline in tanker demand has helped Global Energy Shipping (GES) to save about $250m in its proposed newbuild programme, according to the company. GES said it planned for a $950m joint venture with U-Ming Marine, Chinese Maritime Transport and CPC to acquire six very large crude carrier

A decline in tanker demand has helped Global Energy Shipping (GES) to save about $250m in its proposed newbuild programme, according to the company.

GES said it planned for a $950m joint venture with U-Ming Marine, Chinese Maritime Transport and CPC to acquire six very large crude carriers (VLCCs) and one 80,000dwt chemical tanker between 2010 and 2016.

The company said due to the VLCC price slide in the past few months the cost of the purchase stands at $700m.

The joint venture had estimated to spay $145m for each 300,000dwt VLCC vessel, however, the softening of prices will lower investment costs, according to lloydslist.com.