Japanese shipbuilders have seen a recovery in bulker contracting over recent months following a boxship order rush that has filled early delivery slots at rival Chinese and South Korean yards.

Tokyo broking sources said as many as 40 mainly ultramax and kamsarmax orders have been concluded in Japan this spring, mostly by domestic shipowners.

Because of the private nature of many Japanese shipbuilding deals, the contracts have yet to be disclosed to the market.

Dry bulk shipping analyst D&F reported that Japan has been the second-largest contractor of dry bulk tonnage this year. The Japan Ship Exporters’ Association said that 47 bulk carriers had been ordered so far in 2021, largely in March and April.

Japan’s yards have not only been able to offer early delivery slots but have also been helped by an increase in prices, which have made them more competitive in the market.

Shipbroker Clarksons estimates kamsarmax and handymax bulk carrier prices have risen by close to 11% this year.

The availability of Energy Efficiency Design Index (EEDI) Phase 3 compliance bulk carrier designs, built to a higher fuel-efficiency standard than the current Phase 2 level, is also attracting new business.

Tsuneishi Shipbuilding announced it has now introduced EEDI Phase 3 designs across its range of kamsarmax, ultramax and handysize bulkers.

Under International Maritime Organization regulations, newbuildings do not have to comply with EEDI Phase 3 standards until 2025, but many Japanese yards have moved ahead of the mandatory date to meet demand for low-emission ships.

Tsuneishi president Sachio Okumura said the move is in response to concerns over global warming.

"We would like to develop our ships in advance to meet with the EEDI Phase 3 regulations and provide them to our valuable customers who always are giving us their strong support,” he said.

Oshima Shipbuilding, which is Japan’s largest dedicated bulk carrier yard, is now taking orders for delivery in 2024, after largely covering its 2023 delivery positions.

Repeat order?

There is still some uncertainty in the market over whether Oshima is the recipient of an order for two 87,000-dwt EEDI Phase 3 bulkers recently ordered in Japan by Safe Bulkers for delivery in 2023.

Safe Bulkers placed an identical order at the yard last year for delivery in 2022 but neither yard nor shipowner are commenting on whether this latest contract is a repeat order.

However, Oshima is currently the only Japanese yard known to be offering an 87,000-dwt EEDI Phase 3 bulk carrier design.