China's Fortune Ocean Shipping is adding kamsarmax bulker newbuildings to its fleet amid a plan to exit the handysize bulker segment.

The Dalian-based bulker owner has quietly signed up for four kamsarmax bulker newbuildings with state-owned Dalian Shipbuilding Industry Co (DSIC) for delivery between end 2022 and early 2023. The quartet will be built by DSIC's subsidiary shipyard Shanhaiguan Shipbuilding Industry.

Shipbuilding sources said Fortune Ocean ordered the 85,000-dwt bulk carriers early this year, but the deal was not reported.

An executive of Fortune Ocean confirmed the order of bulker newbuildings at Shanhaiguan, adding that discussions for the ships started late last year before the hike in shipbuilding prices.

Fortune Ocean did not disclose the cost of the 85,000-dwt bulkers but shipbuilding brokers believed the company to be paying less than $29m per vessel since the contract was struck early this year.

The company is already in the money for the quartet because shipyards are now said to be quoting round $36m each for the ship-type and they could only deliver the bulk carrier in late 2023 or early 2024.

Fortune Ocean said the four bulk carrier newbuildings are charter-free.

"We have not decided if we will be operating them or charter them out," said the company executive.

As the firm grows its fleet with kamsarmax bulk carriers, it is also selling its smaller size vessels.

Online database VesselsValue shows Fortune Ocean has recently sold two Japanese-built handysize bulkers – the 34,400-dwt Xing Ning Hai and Xing Zhi Hai (both built in 2015) for $23m and $22.1m respectively to unnamed buyers.

Fortune Ocean confirmed the sale of Xing Ning Hai but said Xing Zhi Hai has not been sold.

Chinese coastal liner company StarOcean Marine has bought Xing Ning Hai and the ship is being operated by newly formed Grampus Marine.

Fortune Ocean said Xing Ning Hai is the fifth handysize bulk carrier that the company has sold this year.

The other four ships that it sold were the 38,900-dwt Xing Rong Hai (built 2016), Xing Zun Hai (built 2016), Xing Ru Hai (Built 2016) and Xing Yi Hai (built 2016). VesselsValue lists Germany's Hamburg Bulk Carriers (HBC) to be buyer of the quartet, paying $16m per ship.

"Our company is going to focus on mid-size bulkers such as the panamax and kamsarmax," said the firm's executive. "We are going to sell away all our handysize bulk carriers."

With the sale of the five handysize bulkers, Fortune Ocean is left with 23 vessels – one capesize bulker, seven kamsarmaxes, five supramax and three handysize.