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).