China Shipping Development to Order New Bulkers

by Ship & Bunker News Team
Thursday April 2, 2015

China Shipping Development Co. (CSDC) has announced in a Shanghai Stock Exchange filing that plans to order three new bulkers have been approved by the board, World Maritime News reports.

The three new 6,600 deadweight tonne (dwt) vessels will be ordered by 51 percent subsidiary Jinghai Shipping, to be built by an as yet undisclosed Chinese shipyard.

CSDC added that it plans to add up to eight vessels to its fleet in 2015.

Four 308,000 dwt very large crude carriers (VLCCs) with a combined price tag of $375.9 million are said to have been ordered this February from Dalian Shipbuilding Industry Co. with a May 2017 delivery date.

CSDC swung into the black in 2014, posting a RMB309 million ($50 million) profit on revenue of RMB12.27 billion ($1.9 billion), up from a RMB2.23 billion ($360 million) loss in the prior year.

The company said that "the increase in freight rates in the international oil transportation market, and efforts made by the group to further strengthen its control over costs" has helped its profitability during the year.

Observers of the global dry bulk market have said the segment will continue to see tough times in 2015, with perhaps a slight recovery later in the year.

In February, Danish player Copenship filed for bankruptcy in what its CEO, Michael Fenger, described as an "extremely bad" market.

Ship & Bunker News Team
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