Shanghai Junzheng Logistics, China’s largest chemical carrier owner, has turned to Japan for its latest newbuildings, passing up Chinese yards despite a significant price premium for the Japanese ships.
A source close to the company confirmed the order for two 19,000-dwt ships from Fukuoka Shipbuilding but declined to comment on the price.
The ships are to be delivered in late 2021 and are part of a general fleet renewal, the source said. They are the first internationally trading ships that Junzheng Logistics has ordered under its new corporate identity.
Virus disruption
Meanwhile, the Chinese part of Junzheng’s newbuilding programme has been disrupted by coronavirus.
Junzheng Logistics, also known as Shanghai Gentco Logistics, was formed last year when Inner Mongolia’s privately owned Junzheng Group took over state-owned Sinochem International Logistics, including its 84-ship chemical carrier fleet and a global tank container operation.
Junzheng still operates the shipowning subsidiary — Junzheng Shipping — under the SC Shipping brand.
Its predecessor company has a history at Japan’s Fukuoka, but it also pioneered the building of large and specially designed chemical carriers in Chinese shipyards.
Two attractions
“For this type of internationally trading tonnage, there are only two points that would attract us to a Chinese shipyard: price, and the possibility of building to a special design,” the source said. “But what we needed in this order was a standard type of vessel.”
The company also has a large fleet of domestic trading chemical carriers built at Chinese yards.
Its only previous newbuilding activity since the Junzheng takeover has been doubling a domestic order for 7,000-dwt vessels at Wuchang Shipbuilding.
Unfortunately, that order was under construction at Wuchang’s facility in Wuhan, which has been a closed city since late January as it is the centre of China’s coronavirus epidemic.
“Our order at Wuchang has been seriously affected by the coronavirus epidemic,” the source said. “Work on the ships has been suspended and nobody knows when they will be delivered.”
The coronavirus interruption did not play a role in the decision to order the new pair of ships abroad, the source added.
The corporate management of Junzheng Logistics has been in flux since last year's takeover and TradeWinds understands that former head of shipping Zhang Xin is now on the way out after being sidelined in a management reshuffle.
Former finance director Song Wei became chief executive of Junzheng Logistics after the takeover.
Soon afterwards, Junzheng Logistics headhunted Si Liang, the general manager of competitor Greathorse Chemical and a former Sinochem chartering executive, to a newly created position reporting to Zhang. TradeWinds now understands she has taken Zhang's top spot in shipping as general manager of subsidiary Junzheng Shipping.
Si and Zhang could not immediately be contacted for comment.
