China Merchants Energy Transportation (CMES) has extended its newcastlemax orderbook this year to 12 ships worth $913m.
Industry sources said the company has put pen to paper on an order for two scrubber-fitted 210,000-dwt bulk carriers at Qingdao Beihai Shipbuilding Heavy Industry, which was first reported in May.
When news of the shipowner’s plans was published in TradeWinds, CMES was said to be considering six to eight newbuildings at the yard.
Sources said CMES was kick-starting the series at Qingdao Beihai with these two vessels, and “more would follow”.
“China Merchants has a 100-ship newbuilding order plan and these newcastlemaxes are just part of the new ships it is ordering,” said one source.
The other ship types have not been disclosed.
TradeWinds is told that CMES is paying Qingdao Beihai close to $80m each for the two newbuildings, which will have shaft generators and energy-saving devices.
Sources said the China State Shipbuilding Corp-controlled shipyard is due to deliver the pair in the second half of 2027.
Newcastlemax splash
CMES’ Qingdao Beihai order brings the number of newcastlemaxes it has contracted this year to 12, costing about $913m in total.
In June, CMES disclosed it had commissioned two other Chinese shipyards to build the bulker type.
It contracted New Times Shipbuilding to build eight vessels and Qingdao Yangfan Shipbuilding to build two ships, as part of its fleet renewal and expansion programme, in line with its target to achieve carbon neutrality by 2060.
It is optimistic about the bulker segment and believes the investments will deliver good returns.
CMES was reported to be paying New Times $76m each for the bulkers, while the Qingdao Yangfan pair was priced at $72.25m apiece. The prices include scrubbers and energy-saving devices.
Brokers believe CMES is paying a premium for the bulkers at New Times, as it is one of the leading shipbuilders in the country.
New Times is scheduled to deliver the octet from 2028 and Qingdao Beihai’s two are set for delivery in the second half of 2027.
Qingdao Yangfan stopped building ships for a few years after encountering cash flow problems in 2016.
In 2018, it was bailed out by minority shareholder Qingdao Huatong Group when major shareholder Jianlong Group quit the yard.
Qingdao Yangfan returned to the shipbuilding market in late 2020 when Compagnie Maritime Belge ordered 5,900-teu newbuildings.
