Bank of Communications Financial Leasing (Bocomm Leasing) has ordered eight ultramax bulkers worth up to $256m at Cosco Shipping Heavy Industry Zhoushan.
Shipbuilding sources said Bocomm Leasing signed up for the 64,000-dwt vessels before China's Golden Week holiday. It is said to be paying between $31m and $32m apiece for the ships, which are slated for 2023 delivery.
It is understood to be the second shipbuilding deal that the Chinese leasing company has signed this year.
Bocomm Leasing did not respond to requests for comment, while Cosco Shipping Heavy was unavailable.
Bocomm is the second Chinese leasing company to have ordered ultramax bulker newbuildings in recent weeks.
China Development Bank Financial Leasing (CDB Leasing) contracted New Dayang Shipbuilding to build nine 60,000-dwt vessels at $29m each for 2023 and 2024 delivery.
Sources said the design of Bocomm Leasing's newbuildings was developed by Cosco Zhoushan and the vessels will comply with the IMO's Phase 3 standards of the Energy Efficiency Design Index.
Bocomm and CDB Leasing were the only two companies to have booked big numbers of the ship type but others have signed up for two to four vessels.
A shipbuilding broker thinks high shipbuilding prices have deterred companies from ordering on speculation or in large numbers.
The broker said: "It would be risky for an owner if he is to order the newbuildings in the current market. It is also expensive for them to raise the money, as compared to leasing firms where they have the resources and [it is] cheaper for them.
"Shipyards are also more at ease with the big volume of orders being made by leasing outfits, as they know they will take delivery of the vessels even if the market is to come down."
In June, Bocomm Leasing contracted state-owned Chengxi Shipyard to build eight woodchip carriers worth about $310m, marking its debut in the segment. It ordered the newbuildings on the back of charters of 15 years to China's largest paper manufacturer, Nine Dragons Paper Holdings.
Chengxi was contracted to build six geared 64,000-dwt ships and two gearless 70,000-dwt vessels. It is scheduled to deliver the first in June 2023, with the others to follow by the second half of 2024.
Bocomm Leasing's newbuildings order tally this year pales in comparison with last year, when it splashed about $1.54bn on six 24,000-teu ultra-large containerships and 12 dual-fuel aframax product tankers at shipyards in China.
It ordered the scrubber-fitted containerships against long-term charters to Mediterranean Shipping Co and the LR2 tankers with backing from Shell.
