Shandong Shipping orders 12 vessels for charter contracts with Shell and Bunge

Shandong Shipping orders 12 vessels for charter contracts with Shell and Bunge

Chinese state-run shipping major Shandong Shipping has entered into shipbuilding contracts for 12 ships, which will be chartered out to two charterers.

The company has placed an order at New Times Shipbuilding for the construction of eight 50,000 dwt product tankers. The vessels will be chartered to Shell for a period of eight years at a fixed rate. The total value of the charter contracts is around $380m.

Additionally, Shandong Shipping ordered four 82,000 dwt kamsarmax bulk carriers at Cosco Shipping Heavy Industry for a $220m 10-year charter contract with commodity trader Bunge at floating rates.

All of the twelve newbuildings will be financed by ICBC Leasing.

Shandong Shipping is undergoing a major fleet expansion programme. The company currently operates a fleet of 17 vessels, and has 15 newbuildings on order including the latest orders.

In March, Shandong Shipping announced a plan to seek an overseas listing after it terminated its listing on National Equities Exchange and Quotations (NEEQ).

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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