Hong Kong-headquartered Cido Shipping has jumped on the very large ammonia carrier trend with a $250m investment in newbuildings.
The shipping tonnage provider is being named as the buyer behind an order for two VLACs placed in South Korea.
HD Korea Shipbuilding & Offshore Engineering — the holding company for HD Hyundai Group yards — said on Tuesday that it had inked a contract to build two VLACs.
It did not name the contracting party other than to describe it as “an Oceanian shipper”.
HD KSOE said the pair of ammonia carriers would cost KRW 339.6bn ($250m), valuing the vessels at $125m each.
Ulsan-based HD Hyundai Heavy Industries will be constructing the 88,000-cbm gas carriers and deliver them by September 2027.
Cido did not reply to email questions on the newbuildings.
The company currently controls seven HD Heavy Industries-built VLGCs operated by MOL Energia, formerly known as Phoenix Tankers, the Singapore-registered subsidiary of Mitsui OSK Lines.
Shipowners have rushed to order VLACs — essentially VLGCs but with hull strengthening and a mix of other specifications that add a small price premium — over the last 18 months notching up just over 60 orders in anticipation of the emergence of the long-haul ammonia trades in time.
Cido joins names like Maersk Tankers, TMS Cardiff Gas, Capital Gas, Qatar’s Nakilat, Idan Ofer-controlled Eastern Pacific Shipping, Greece’s Naftomar, Japanese giant NYK, PascoGas of Turkey and Dorian LPG who have contracted tonnage.
According to Clarksons’ Shipping Intelligence Network, Cido controls a fleet of 73 vessels and before these new VLACs had some 46 vessels on order.
This latest newbuilding deal looks set to bring the company’s total spending on newbuildings this year to close to $3bn.
In July, the Hyuk Kwon-owned shipping company was reported to have ordered 36 new ships, including suezmax tankers, aframax product carriers, MR tankers and pure car/truck carriers.
The 158,000-dwt crude oil tankers will be constructed by HD Heavy Industries. The scrubber-fitted ships were reported to cost close to $91m each and are slated for delivery in 2027.
HD Hyundai Mipo’s sister yard, HD Hyundai Vinashin Shipbuilding, is building four LR2 tankers and a quartet of MR vessels for Cido. The LR2 newbuilding was said to cost $70m, while the 50,000-dwt product carrier is pegged at around $47m.
Delivery of the 115,000-dwt tankers is set for 2028, while the firm MR tanker newbuildings are slated for 2027.
Over in China, Cido has contracted Shanhaiguan Shipbuilding to build 10 conventional marine-fuelled LR2 tankers for $55m or $58.5m apiece. They are set for delivery in 2028.
Cido, which has not ordered car carriers for almost two decades, also penned a dozen LNG dual-fuelled 7,800-ceu newbuildings at China Merchants Heavy Industries Jiangsu.
Brokers said Cido is paying $90m each for the PCTCs.
In addition, last year Cido ordered six ultramaxes plus a sextet of kamsarmax bulker newbuildings in China to be delivered between this year and 2026.
