Dole, the US fruit giant, is set to order up to four reefer containership newbuildings worth at least $180m as it seeks to renew its fleet.
Shipbuilding sources said the California-based company has approached shipyards in China for two firm 2,500-teu newbuildings with reefer-plug capacity for 900 40-foot equivalent units.
The deal includes options for two more vessels.
Singapore-listed Yangzijiang Shipbuilding, China State Shipbuilding Corp, Huangpu Wenchong Shipbuilding and Chengxi Shipyard are among the Chinese shipbuilders that Dole is said to have approached.
One shipyard source confirmed Dole’s enquiries.
“The company has the intention to take delivery of two new vessels per year over a period of five years so that it could have a modernised fleet,” the shipyard source said.
Dole did not immediately respond to a request for comment.
Coming of age
With an average vessel age of around 21 years, Dole’s fruit-carrying fleet is ripe for renewal.
The company’s website lists a fleet of 15 vessels, of which nine are self-sustained refrigerated carriers and the remainder are conventional reefers with container-carrying capacity on deck.
Clarkson’s Shipping Intelligence Network says just three of Dole’s ships are under three years old, with the rest constructed between 1986 and 1999.
The last time Dole ordered newbuildings was five years ago, when it contracted South Korea’s Hyundai Mipo Dockyard to build three 770-feu reefer containerships at a reported price of $55.3m apiece.
It has since taken delivery of the 1,540-teu trio: the Dole Pacific (built 2015), Dole Atlantic and Dole Caribbean (both built in 2016). The three ships are used on US West Coast services.
IMO standards
Shipbuilding sources said Dole is seeking to have its latest vessels built to comply with the IMO’s Tier III NOx emissions standards. They estimate the company will pay at least $45m per ship. It has not disclosed whether the vessels will have dual-fuel engines or be fitted with scrubbers.
Containership market sources said it makes sense for Dole to order newbuildings even though shipbuilding prices may have increased by up to 10% in the past six months.
“The current shipbuilding price is still on the low side,” said one containership expert. “These reefer containers are specialised ships and Dole will be using them for more than 20 years.”
