Core Viewpoint - Ray Car Carriers has signed a contract with HD Korean Shipbuilding for the construction of 4 VLCCs, marking a significant expansion in its operations within the oil tanker market [2][3]. Group 1: Company Overview - Ray Car Carriers, established in 1992, is the largest operator in the car carrier market, managing a modern fleet of 65 vessels and providing services to top shipping companies through long-term charter contracts [3]. - The company has recently entered the VLCC market, purchasing two second-hand VLCCs for $95.5 million each, which are currently leased to commodity trading giant Trafigura [3]. Group 2: Contract Details - The contract for the 4 VLCCs amounts to 762.7 billion KRW (approximately $517 million or 3.68 billion RMB), with an individual ship price of $129 million [2]. - The new vessels are set to be constructed at HD Modern Samho and are scheduled for delivery by mid-August 2028 [2]. Group 3: Market Trends - The VLCC market is experiencing a surge in new orders, with 38 VLCCs ordered since July, compared to only 12 in the first half of the year, driven by optimistic mid-term market prospects and previous underinvestment [3][4]. - VLCC daily charter rates from the Middle East Gulf to China have surpassed $140,000, the highest level in nearly five years, indicating a strong demand in the market [4]. Group 4: Industry Dynamics - Structural changes in the VLCC sector are noted, with increased demand from Middle Eastern exporters like Saudi Arabia, which is ramping up production, potentially shifting reliance away from Russian oil [4]. - HD Korean Shipbuilding has secured a total of 116 vessels this year, achieving approximately 89.9% of its annual order target of $18.05 billion [5].

Group 1 - Trafigura has returned to Hyundai Heavy Industries to order 2 additional VLCCs (Very Large Crude Carriers) with delivery expected in September 2029 and March 2030 [2] - The estimated price for each VLCC is not disclosed, but previous estimates suggest it is under $120 million [2] - With the latest order, Trafigura has now ordered a total of 10 VLCCs from Hyundai Heavy Industries, marking a significant investment in its fleet [2][3] Group 2 - The new VLCCs are designed to be ammonia-ready and equipped with desulfurization systems, indicating a focus on environmental compliance [3] - Trafigura's confidence in the VLCC market is reflected in the surge of new orders, with 38 VLCCs ordered since July, compared to only 12 in the first half of the year [3] - The company is one of the leading independent commodity trading and logistics firms globally, with a significant volume of oil and petroleum products traded [3] Group 3 - Trafigura's current fleet consists of 20 liquid cargo vessels, including 1 VLCC, with a total capacity of approximately 1.37 million deadweight tons [4] - In addition to VLCC orders, Trafigura has new vessels under construction, including 4 medium LPG carriers and 1 asphalt carrier [4] - Hyundai Heavy Industries has a backlog of 97 vessels totaling 11.9845 million deadweight tons, with delivery schedules extending to 2029 [5]