Turkey's Yasa Shipping has returned to Dalian Cosco KHI Ship Engineering Co (Dacks) for ultramax newbuildings as prices continue to move higher.
The Istanbul-based company has signed up for two 64,000-dwt bulkers worth more than $66m in total, according to shipbuilding market sources. It is not known if the contract includes options for additional ships.
Yasa is believed to have contracted the pair of newbuildings in direct negotiations with the Chinese-based shipyard. It is said to be paying slightly more than $33m for each vessel, which will be built to comply with Phase 3 standards of the Energy Efficiency Design Index (EEDI).
The shipowner is scheduled to take delivery of the pair in 2023.
Shipbuilding market sources believe Yasa is paying a premium for the Dacks ultramaxes as the quality of its ships are guaranteed by Japan’s Kawasaki Heavy Industries, a partner in the shipbuilder.
"The 2023 delivery date is possibly another reason for the higher priced newbuildings," a shipbroker said.
For comparison, Ciner — a compatriot of Yasa — recently inked four ultramax newbuildings at New Dayang Shipbuilding for delivery in the first half of 2024. Shipbuilding brokers said the company is paying around $30m each for the four vessels.
Officials at Dacks declined to comment on the shipyard's newbuilding activities when contacted.
A senior official at Yasa confirmed that his company is engaged in newbuilding discussions with the Sino-Japanese shipyard but said the deal has not been signed. He added that since the contract is not signed, he is unable to disclose the vessels' delivery dates and price.
Yasa is ordering the ultramax bulkers as part of the company's fleet-renewal programme.
Shipbuilding price continues to rise
The order comes as shipbuilding market sources expect newbuilding prices to continue to increase due to strong enquiries for containerships and bulk carriers. They added that engine makers and ship-equipment manufacturers have also been hit by rising material costs, and they are passing the additional expenses onto shipbuilding companies.
Yasa is a repeat customer at Dacks. In 2018, it ordered four 61,000-dwt ultramaxes at the yard for a reported price of $24.5m each. It took delivery of the quartet — the Yasa Saturn, Yasa Jupiter, Yasa Mars and Yasa Venus (all built 2019) — two years ago.
The Sabanci family-controlled Yasa has also expanded its bulker fleet with a resale deal for kamsarmax newbuildings.
In March, it bought two 85,000-dwt bulker newbuildings that are under construction at Chengxi Shipyard and due for delivery in February and March 2023. Yasa acquired the wide-beam, shallow-draught duo from China Minsheng Trust for $114m — or $28.5m each. The Chinese leasing company pocketed a profit of $6m from the transaction.
A month later, Yasa splashed out around $30m to buy the 84,800-dwt Yasa Diamond (built 2021) from AVIC International Leasing.
On the tanker front, Yasa bought the 318,300-dwt Yasa Southern Cross (ex-Qi Lian San, built 2021) for $44m in March. The Chinese-built crude carrier was sold by creditors of the collapsed Xihe Group in Singapore.
