Idan Ofer’s Eastern Pacific Shipping has turned to Chinese state-owned Shanhaiguan Shipbuilding Industry for feeder containerships in what is described as a response to the financial issues facing Zhejiang Ouhua Shipbuilding.
Shipbuilding players said Singapore-based Eastern Pacific was finalising an order with the China Shipbuilding Industry Corp-controlled shipyard for two 2,700-teu geared vessels for delivery from the end of 2019.
They added that the newbuildings were aimed as replacements for containerships ordered last year by the company at Zhejiang Ouhua.
Eastern Pacific was reportedly paying about $29.5m for the geared, Tier II-complaint vessels and had been scheduled to take delivery of them this year.
Cash-flow crisis
One shipbuilding broker believes Eastern Pacific’s newbuildings at Ouhua did not come into effect as the yard has had difficulty securing refund guarantees due to its cash-flow crisis.
But an Ouhua insider said Eastern Pacific’s order is still intact, although he had also heard that it had approached Shanhaiguan for containership newbuildings.
Eastern Pacific did not reply to a request for comment.
Meanwhile, containership brokers believe Cape Shipping’s recent order for two 2,700-teu high-reefer units at CSIC-affiliated Huangpu Wenchong Shipbuilding for delivery at the end of 2019 are also to replace a pair of similar-size newbuildings it has at Ouhua.
The Greek owner signed up for Ouhua’s newbuildings last summer. The deal was for two firm units plus two options at $29m each for delivery in the first half of 2019.
Another indication
Containership brokers believe China Navigation Co’s latest four boxship contracts at Huangpu Wenchong are another indication that Ouhua is in trouble. They said the Singapore-based shipping company has booked series of multipurpose vessels and containerships at Ouhua in the past.
According to Clarksons, Ouhua is sitting on an orderbook of 20 newbuildings with delivery dates in 2018 and 2019. These include half-a-dozen heavylift vessels for Spliethoff, four 3,100-teu boxships for Arkas Shipping and Transport, three feederships for Reederei Nord and the Eastern Pacific newbuildings.
