Shandong Shipping is said to have finally committed to a series of newcastlemax newbuildings at Qingdao Beihai Shipbuilding Heavy Industry. However, an executive at the Chinese shipowner said the deal has not been finalised.
Shandong has signed up for four firm 208,000-dwt bulkers to be delivered in 2021, with no optional vessels included.
News that it was planning to order the newcastlemaxes was first reported in TradeWinds late last year, when the company was said to be in discussions with state-owned Qingdao Beihai for two firm vessels plus options for another pair.
“We have the intention to order these ships but they are still under negotiation,” Shandong dry bulk general manager Li Maizhong told TradeWinds.
He confirmed the order involves four firm ships with no options, and that delivery will “most likely” be in 2021.
Beihai officials declined to comment on the yard’s newbuilding activities.
Shandong is said to be paying around $55m each for the bulkers, which include scrubbers and will comply with the IMO’s Tier III emissions standards. Li declined to comment on the price per ship but described it as a market level.
Shipbuilding players familiar with Shandong’s order said it has signed up for the newbuildings on the back of long-term contracts of affreightment (COAs) with Vale. But Li said the deal with the Brazilian mining giant was not the only driver for the order.
“All four may be for COA to Vale, but the Vale COA would be for only four or five years, so that would not be their only employment,” he added.
A Vale spokeswoman declined to comment when contacted by TradeWinds.
Koreans make their move
Shandong is not the only company ordering newcastlemax newbuildings against employment with Vale.
South Korea’s Pan Ocean, Polaris Shipping and H-Line Shipping have made similar moves, placing their orders at privately owned Chinese yard New Times Shipbuilding.
Pan Ocean and Polaris have each booked two vessels, while H-Line has signed up for five. New Times is scheduled to deliver the 210,000-dwt vessels from the second half of next year and into 2021.
Besides the newcastlemaxes on order at Beihai, Shandong is due to take delivery of 10 capesizes being built at Shanghai Waigaoqiao Shipbuilding (SWS).
It has ordered the scrubber-fitted, 180,000-dwt bulkers on the back of long-term charters from German energy powerhouse RWE. SWS is slated to deliver the vessels in 2020 and 2021.
China’s Bank of Communications Financial Leasing and Shandong Huachen Financial Leasing are funding the capesizes.
Eric Martin contributed to this story
