Shipowner Idan Ofer’s Eastern Pacific Shipping is splashing out close to $700m on midsize container ship newbuildings, inking a deal with Hyundai Heavy Industries for up to six dual-fuelled 7,000-teu vessels.

Shipbuilding sources said the Singapore-based company has contracted the yard to build three firm vessels for delivery in 2024, with an option for three additional ships.

The deal lifts Eastern Pacific's orderbook to 72 vessels worth about $9bn and, according to sources, represents a part of wider enquiry dubbed Project Knight — for 12 ships worth about $1.44bn that was circulated last year.

Officials at HHI and chief executive of Eastern Pacific Cyril Ducau declined to comment when contacted.

TradeWinds has learned that the three firm newbuildings are for charter to Israeli liner operator Zim. The charter rate has not been disclosed but the sources said the vessels have been fixed for eight years.

They added that it is widely known that Zim had been looking to charter a series of dual-fuelled 7,000-teu container ship newbuildings.

Under the code name Project Knight, an enquiry of 12 vessels worth about $1.44bn that was circulated at the end of last year was linked to Zim. Shipyards in South Korea and China were being asked for quotes on seven firm 7,000-teu vessels plus options for an additional five ships.

"The three firm newbuildings that [Eastern Pacific has] ordered are subset to Project Knight," said a shipping source.

Sources said that Project Knight is ongoing and several shipping companies had shown interest.

Eastern Pacific is said to be paying HHI at least $116m each for the 7,900-cbm ships. The vessels will be fitted with high-pressure field gas systems and MAN Energy Solutions’ ME-GI engines. They will also each be fitted with a 6,000-cbm type-C tank that will be located on deck.

Eastern Pacific also has seven 6,983-teu boxships under construction at China's New Times Shipbuilding to be delivered in 2023 and 2024.

It ordered the vessels last year at a reported price of $80m each. The boxships will be powered by conventional marine fuels, fitted with scrubbers and be equipped with 1,600 reefer plugs.

Eastern Pacific was said to have found employment for five of the ships with CMA CGM, which is said to have chartered the quintet for at least eight years at slightly more than $40,000 per day.

Eastern Pacific also has 17 dual-fuelled ultra-large boxships on order at HHI and Hyundai Samho Heavy Industries. The 15,000-teu ships are due for delivery by 2023 and are fixed out to Mediterranean Shipping Co and CMA CGM.

Online database VesselsValue lists Eastern Pacific with 66 newbuildings worth close to $8.32bn on order, excluding the 7,900-teu boxships at HHI. Its orderbook consists of 13 bulk carriers, 24 container ships, 12 gas carriers, 10 car carriers and seven tankers.

Eastern Pacific has about 130 vessels on the water.

Cyril Ducau is the chief executive of Eastern Pacific Shipping. Photo: Fredrik Ekren