Pioneer Tanker, a Singapore-based subsidiary of China's Pioneer Logistics, has emerged as the buyer of at least five product tankers that have connections to the failed Xihe Group.
The mix comprises three 34,800-dwt MR1 newbuilding resales that were under construction at Fujian Mawei Shipbuilding at the time of Xihe's collapse, along with two small product tankers from the Singaporean shipowner's liquidators.
Market sources say that the newly formed tanker operator has other tanker purchases in the pipeline with a goal of owning a fleet of at least 10 vessels.
The three Fujian Mawei-built MR1 resales were originally assigned the names Ocean Iris, Ocean Clover and Ocean Dahlia when first ordered by Xihe. Delivered by the shipbuilder in October and November, they have been named Bowmore, Dictador and Ardberg, respectively.
At the same time, Pioneer Tanker bought two smaller Xihe product tankers — the 12,000-dwt Ocean Seal (built 2018), which has been renamed Longrow, and the 13,800-dwt Ocean Gurnard (built 2019), which is now trading as the Longmorn.
TradeWinds understands that Pioneer Tanker's aim is to be a pure market player. It is trading its new ships in the market and does not have its own cargoes.
While new to tankers, Pioneer Logistics is a well-established shipping player using Singapore and China as its main maritime bases.
Chinese subsidiary Ningbo Zrich Shipping controls a fleet of 12 supramax bulk carriers, while Singapore-based Pioneer Bulk operates four bulk carriers. These are a mix of directly owned, leased and chartered vessels.
Pioneer Line, also operated out of Singapore, runs a liner service linking China, Singapore and Malaysia using container ships and multipurpose general cargo ships.
Additional resales
The three MR1 tankers acquired by Pioneer Tanker are part of a 14-ship order that China's Fujian Mawei has been selling off since Xihe collapsed in early 2020.
IHS Markit data indicates that a cluster of obscure Marshall Islands-registered companies has taken ownership of several other newbuildings in the series. The relationship between these companies is unclear.
Tanker market sources said they believe the vessels are controlled by Chinese interests.
Bright Lilac Shipping took delivery of the 34,800-dwt Golden Camellia upon its completion in October. The vessel was originally set to be named Ocean Lilac.
Bright Rose Shipping took delivery of the 34,800-dwt Golden Dahlia from the shipbuilder in November. The vessel was originally set to be named Ocean Rose.
Bright Lotus Shipping is listed by IHS Markit as the new owner of the Golden Daisy, which was laid down as the Ocean Lotus. The ship has been launched and is scheduled for completion in February 2022.
Fujian Mawei, according to brokers, still has six more of Xihe's MR1s under construction. Two have had their keels laid, while four have already been launched.
IHS Markit indicates that one of the launched vessels, a hull that was supposed to be completed as the Ocean Jasmine, has had its name changed to Laphroaig with delivery scheduled for May, which suggests it may also have been sold.
Shipbuilding sources have told TradeWinds that Fujian Mawei began marketing the ships directly in 2020 after it became clear that Xihe was no longer in a position to pay for or accept delivery of them.
Previous reported sales of this class of vessel include Piraeus-based Silk Searoad Maritime's purchase in April of the 34,800-dwt newbuilding Ocean Daisy, which entered service under the name Libra II and has been operating in the Maersk Tankers pool.
Shortly thereafter, Dajo Marine of Singapore bought the 34,800-dwt newbuilding Ocean Lily, which entered service in June as the Synergy.
The yard has sold off the units of two series of 13,800-dwt and 11,000-dwt product tankers that were under construction at the time of Xihe’s collapse but is believed to have not proceeded with the ordered vessels, for which construction had not yet commenced.
What effect the sale of the MR1s will have had on Fujian Mawei's bottom line is difficult to determine. The vessels were reported to have been contracted for around $26m each.
Market reports have indicated resale prices varying from $18.5m and $25m for some of the ships. However, the shipbuilder, which could not be reached for comment, was likely to have kept any deposits and instalments paid by Xihe.
