Daewoo order marks return to ULCCs

In a move that could presage orders for the construction of more ships of the type, Loews Corporation and Greek shipowner Basil Papachristidis have ordered two 450,000 dwt, 3.2m million barrels capacity ULCCs from Daewoo Heavy Industries in Korea.

The order, which is also includes an option for two more ships, is the first for ULCC tonnage in many years. ULCCs have not been ordered since the early 1980s, although a recent study by Intertanko suggests that there could be sufficient demand for 30-40 units of this type in future.

The newbuildings are due to be delivered by the end of the second quarter of 2002. To be classed by Lloyd?s Register they will be 380m overall, with a beam of 86m.

No price for the ships has been disclosed, but they are thought to be costing their owners $85-90 million, significantly less, of course, than would have been the case until the worldwide crisis in the shipbuilding industry.

For its part, Daewoo says it is confident that the options in the contract will be exercised.