Recently, Bruton, a company under Norwegian shipowner Tor Olav Troim, announced it will place an order for up to 4 VLCCs at New Times Shipbuilding.
Bruton stated that its affiliated company, Andes Tankers III, has signed a Letter of Intent with New Times Shipbuilding for 2+2 VLCCs equipped with scrubbers. The first two vessels are scheduled for delivery between the fourth quarter of 2028 and the second quarter of 2029. The optional orders are set to be confirmed and become effective within this year, with planned delivery in the second half of 2029.
Bruton did not disclose the specific value of the order. For reference, data from Clarksons shows that the current newbuilding price for a 315,000-320,000 DWT VLCC is approximately $126 million (about RMB 897 million), slightly lower than the $129 million from the same period last year.
Including the latest order, the total number of VLCCs Bruton has ordered at New Times Shipbuilding will increase to a maximum of 6+2 vessels. The initial two ships, ordered in 2023, are LNG dual-fuel powered with a cost of up to $133.85 million each. Another two ships, ordered in February 2024, use conventional fuel.
It is understood that in 2023, Tor Olav Trøim returned to the tanker market after a 15-year absence, signing a contract with New Times Shipbuilding for two 320,000 DWT LNG dual-fuel VLCCs. With this order, New Times Shipbuilding became the third shipyard in China and the fifth globally to build dual-fuel VLCCs, and also the first private shipyard in China to undertake LNG-powered VLCC construction.
Tor Olav Troim was formerly the right-hand man of Norwegian shipping magnate John Fredriksen, co-managing the tanker company Frontline Management with him until 2008. Since parting ways with John Fredriksen in 2014, he has focused on drilling, LNG, and dry bulk shipping businesses. In 2023, Tor Olav Troim stated that after being bearish on the tanker market for 15 years, he had begun to turn bullish, as the tanker orderbook was at its lowest point in 30-40 years.
As a company under Tor Olav Troim, Bruton holds a very optimistic outlook for the VLCC market in the coming years. The company’s CEO, Gunnar Winther Eliassen, previously stated that, supported by an aging fleet, limited orders, and improved demand prospects, the VLCC market is entering a multi-year upward cycle.
It is worth noting that Tor Olav Troim has been a “die-hard” client of New Times Shipbuilding. He established 2020 Bulkers in 2017 to formally enter the bulk carrier market and placed an order for eight 208,000 DWT Newcastlemax bulk carriers at New Times Shipbuilding in July of the same year. In 2021, Tor Olav Troim founded the dry bulk shipping company Himalaya Shipping, placing a single order for twelve 208,000 DWT LNG-powered bulk carriers at New Times Shipbuilding.
It is understood that New Times Shipbuilding was established in 1971. It is a large private enterprise integrating ship design and manufacturing. It was the first local shipyard in China to build a 10,000-ton ship (in 1996) and the first private shipyard in China to build large LNG dual-fuel powered ships (in 2019). The company has total assets exceeding RMB 40 billion, covers an area of approximately 2.6 million square meters, and has a shoreline of about 3,200 meters. It currently operates 3 ship docks, 3 outfitting quays, and supporting facilities such as intelligent block manufacturing workshops and intelligent large-diameter pipe welding and assembly workshops for ships.
New Times Shipbuilding’s main products are medium and large conventional and LNG dual-fuel powered bulk carriers, /chemical carriers, and container ships. These include 50,000 DWT chemical tankers, 325,000 DWT VLOCs, 320,000 DWT VLCCs, 110,000 DWT / 158,000 DWT tankers, 210,000 DWT bulk carriers, and 8,100 TEU to 18,000 TEU container ships, which are high-tech green vessels. In 2024, the company delivered 34 ships totaling 4.2707 million DWT, setting a historical record for the number of deliveries and ranking among the top three in China in terms of total shipbuilding output.
Excluding the latest order, data from Clarksons shows that, as of now, New Times Shipbuilding holds a total orderbook of 153 ships amounting to 22.03 million DWT. This includes 8 bulk carriers, 75 tankers, and 70 container ships, with deliveries scheduled up to 2029.
