A pair of dual-fuelled feeder boxship newbuilds ordered by Seaboard Marine in China appear to be costing significantly more than anticipated.
Parent company Seaboard Corp confirmed that its Miami-based marine division had inked contracts to build two small dual-fuelled container ships for a price of $49m each.
The company signed an order in June for two LNG dual-fuel 1,450-teu feeder ships at Nantong CIMC Sinopacific Offshore & Engineering.
But the Chinese yard pinned the contract value, including two options, at CNY 1bn ($140.5m) or $35m per vessel — around $14m less per vessel than what Seaboard reports.
Seaboard said the total cash outlay for the two ships is $98m, with the vessels expected to be completed in late 2025.
The vessels will be fitted with MAN’s high-pressure dual-fuel main engine and will be the world’s first to feature tri-lobe C-type fuel tanks.
Seaboard Marine reported a drop in cargo volumes and revenues in the second quarter of the year.
Operating profits dropped by one-third to $60m in the three months to 1 July, from $155m in the same period in 2022.
A fall in cargo volumes and voyage revenues saw sales decline by $167m to $356m, according to a quarterly filing by the US-listed parent company.
Freight rates continued to decline as demand declined.
But management expects that Seaboard Marine will be profitable for the remainder of 2023, although operating income is expected to be lower than the prior year.
The company operates a fleet of around 19 boxships with capacities ranging from 470 teu to 2,572 teu.
It owns five container ships of between 974 teu and 2,564 teu.
Some $58m has been invested this year to purchase a secondhand vessel, instalment payments on vessels under construction and other investments. The company bought the 1,036-teu Seaboard Blue (built 2011) earlier this year from German interests.
Meanwhile, the company is renewing its fleet and has orders for three 3,500 teu dual fuel LNG-powered units under construction at Taizhou Sanfu in China.
The trio were ordered late in 2021 for around $60m each and are slated to join Seaboard in the first half of next year.
The company is also active in the charter market where it has taken a pair of 1,800-teu Bangkokmax boxships being built for Singapore-based Eastern Pacific Shipping. Those ships are scheduled for delivery from Hyundai Mipo Dockyard next year.
