Eastern Pacific books up to eight product tankers at New Times

Eastern Pacific books up to eight product tankers at New Times

Idan Ofer’s Eastern Pacific Shipping has signed a letter of intent with Chinese shipbuilder New Times Shipbuilding for the construction of up to eight product tankers.

The contract will include firm orders for four 110,000 dwt LR2 product tankers and options for additional four vessels. Delivery of the first ship is scheduled by the end of 2020.

The price for the deal is not disclosed, with the price for a newbuild LR2 product tanker currently sitting at around $46m-$49m.

The company ordered a pair of 114,000 dwt tankers at Hanjin Heavy Industries’ Subic Bay yard in the Philippines in 2017, however the deal eventually failed as the financially troubled yard was unable to secure refund guarantees.

Eastern Pacific currently operates a fleet of 95 vessels comprising 19 bulkers, 28 containerships, 37 tankers, five gas carriers and six car carriers. It also has 20 newbuildings on order. The company has been looking to exit the handysize bulker segment, having listed its only four handysize bulkers for sale.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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