Bulker owner Ocean Longevity is sticking to the basics with an order for two capesizes at Namura Shipbuilding in Japan.
The 180,000-dwt ships will be equipped with propulsion that uses conventional fuels and will be built with the medium-term charter market in mind. They are set for delivery in 2022 and the first quarter of 2023.
Shipping database VesselsValue lists Namura as already having three capesizes on order for delivery this year to unknown owners at undisclosed prices.
The pricing on the Ocean Longevity order remains confidential under contract terms but the market for such ships puts them above $50m each.
Financing is not in place yet but the company expects to line up conventional bank financing as with other recent orders.
"Japanese banks are very interested in doing business with us," said Ocean Longevity assistant president Shane Lam.
The latest Namura capesize newbuildings are not being built for any particular employment but with a view to supply and demand in general.
"Currently, not very many capesizes have been contracted," Lam said. "We anticipate that the world economy will recover soon and it is a good time to order newbuildings — this year and next."
The Kwai Sze Hoi-controlled company decided against dual-fuel ships because of uncertainty about the availability of LNG at some ports.
"LNG will be available at Singapore but we don't know what the supply will be like in places for vessels trading worldwide, so we decided to stick to our old style," said Lam.
Ocean Longevity together with affiliates including Ocean Line Holdings has a fleet of 35 ships on the water after the sale of a 1997-built panamax and its two oldest handysizes last year, Lam said.
Those sales brought the fleet's average age down to nine years.
Lam said Ocean Longevity is happy with the currently lucrative earnings from its seven remaining handysizes but has no plans to expand right away in that segment, or to place further newbuilding orders in any segment because of the capital commitment from its current newbuilding programme.
The newly signed capesize pair essentially represents a repetition of an earlier Namura order. The 182,900-dwt Ocean Dragon (built 2020) was delivered to Ocean Longevity last June.
The company also has two kamsarmaxes on order at China's Yangzijiang Shipbuilding for delivery in July and October. Bank financing has now been concluded on those ships, and Lam said the company is looking for one-year time charters for both.
Two previous kamsarmaxes in the Yangzijiang series, the 82,000-dwt Ocean Tide and Ocean Time (both built 2019), are trading on 11 to 14-month time charters at index-linked rates, he said.
The company's other recent newbuildings are two Japanese-built kamsarmaxes delivered last year, from Oshima and from Sasebo.
In addition to its fleet, Ocean Longevity is a shareholder in Australia’s Brockman Mining, of which Kwai is also chairman. Five VLOCs of up to 250,000 dwt are employed in part to serve Kwai's mining interests.
