from "Tradewinds" this morning, the headline "Difficulties in contract talks with BHP could see bulkers become LNG units." take a number of VLOCs out of supply headline and numbers rationalize far more quickly!
How long does it take to build a hull? Perhaps a conversion of an older vessel into a Floating Storage and Regasification Unit? There are still only a relative handfull of shipyards that can build an LNG carrier, although the Chinese are trying to get into the act and no doubt will eventually.
Keeb, i'm not sure on the hull question. i generally assume a year for a finished ship, but a more sophisticated vessel... don't know. what i am trying to underscore is a disconnect i see between the headline ship capacity # , which includes Vale's whale's, and a # that more accurately reflects functional capacity # . i would assume if the VLOCs end up in Chinese hands at .60 on the dollar, ports will magically open up, so i'd be tickled pink to see them turned to LNG use!
With a ship type that typically has an extended life-span and must not, ideally, blow up, why would anyone buy a China-built vessel? China may already be building one of these. And they may force one of their state owned companies to be the first to buy one of these. But I would imagine it would be a very long time before anyone else would choose to buy one. If the insurers saw any higher risk and jacked up rates, any purchase savings could be wiped out overnight.