Eastern Pacific Shipping is said to have splashed an estimated $1.7bn on up to 11 container ship newbuildings that will swell its fleet beyond 300 vessels.
Sources said the Idan Ofer-controlled company, which has 193 ships trading and 97 newbuildings on order in the Far East, signed the deals at New Times Shipbuilding in China against charter contracts.
They said Eastern Pacific has ordered four ultra-large 18,000-teu vessels and four 8,400-teu ships. The contract for the smaller ships involves three options.
TradeWinds has learned that the ultra-large vessels are options that the Singapore company held at New Times after ordering eight vessels there in July.
Officials at Eastern Pacific and New Times declined to comment when contacted.
Sources said French liner CMA CGM has secured the newbuildings, which can be powered by LNG or conventional fuel, under long-term charters.
The terms of the charters have not been disclosed.
But brokers said Eastern Pacific is paying more than $200m each for the larger vessels and about $130m apiece for the 8,400-teu ships.
Jiangsu-based New Times will construct the ships, which are slated for delivery in 2027 and 2028, at its new dry dock.
Fleet grows beyond 300
Eastern Pacific has various types of tankers, bulk carriers, pure car/truck carriers, container vessels and gas ships on order in China, Japan and South Korea.
After taking delivery of all the newbuildings by the end of 2028, its fleet is set to grow beyond 300 units.
One industry player thinks the tonnage provider has one of the most modern fleets in the container arena.
“Like in all other areas [tankers, bulkers, car carriers and gas ships], Eastern Pacific has been extremely active the past few years on placing container newbuildings,” said one boxship player.
He said Eastern Pacific has taken advantage of the strong secondhand container market to sell its older ships and focus on modernising its fleet.
“Out of a container fleet of 75 vessels, including newbuildings, only nine vessels are built before 2020, which is rather remarkable if you think about it,” said the source.
“It is possibly one of the most aggressive expansion moves from a privately owned shipowner …
“What differentiates them from others is that they are willing to order without any charter in place and … willing to take the risk.”
Eastern Pacific is said to have close cooperation with CMA CGM, which is said to be its number one container ship customer, followed by MSC Mediterranean Shipping Company.
Another shipping source said Eastern Pacific has over the years shifted its business model from being more of a spot player, “milking middle-age vessels”.
“Now Eastern Pacific probably has the most modern, lowest-emission fleet with many long-term charters with strategic partners across all segments,” he said.
More than half of its trading fleet is on time charter, he added, and more than 50% of the newbuildings have secured employment of between five and 15 years.
The company’s time charter backlog is estimated to be well over $20bn.
