Eastern Pacific returns to Waigaoqiao to book two suezmaxes
In the Chinese yard’s first deal since the Lunar New Year, Singapore-based Eastern Pacific is said to have fetched a low price tag
Eastern Pacific Shipping (EPS) has continued its ordering spree by firming up a newbuilding deal for two suezmax tankers at Shanghai Waigaoqiao Shipbuilding.
Last month, TradeWinds reported the companies were in talks over the 158,000-dwt ships that run on conventional fuel.
Chinese media Eworldship reported the Singapore-headquartered owner eventually signed up for the pair last Friday, the first newbuilding order Waigaoqiao has secured since the yard resumed production following an extended Lunar New Year holiday.
EPS and the Chinese yard reportedly negotiated the deal via video conferencing as a containment measure for the epidemic of Covid-19 coronavirus, which had spread from China to Singapore and dozens of other countries.
Brokers said the vessels were booked at $52.5m apiece for delivery in 2022. The two companies did not immediately reply to emails seeking confirmation.
The price tag, if correct, is much below market expectation. Greek brokerage Intermodal this week assessed the newbuilding price for a suezmax at $58m.
“I am struggling to believe it,” a broker admitted.
Backed by Idan Ofer, EPS has recently launched some of the largest newbuilding programmes in shipping, which may have given the company strong bargaining power.
In December, EPS booked two suezmax tankers that can run on LNG and conventional fuel at Guangzhou Shipyard International (GSI) for $72m each, with options for another two.
The company simultaneously signed for two 209,000-dwt dual-fuelled bulkers at Waigaoqiao, plus options for two more.
Both GSI and Waigaoqiao are offshoots of China State Shipbuilding Corp, the largest shipbuilding conglomerate in China that is controlled by the central government.
In January, EPS again splashed out $771m for six dual-fuelled boxships at South Korean shipbuilder DSME.
The 12,000-teu ships are due to be delivered in 2022.
Also, EPS booked at least two conventional 50,000-dwt product tankers at Dae Sun Shipbuilding & Engineering last month. The company was said to be paying between $33m and $34m for each unit.
Aside from the recent deals, EPS has 18 15,000-teu containerships, four LR2 and four MR product tankers, three handysize chemical tankers and one 38,000-cbm multigas carrier on order.
Today's Bunker Prices:
Big newbuilding programmes
