World News
UASC Wins $512 Loan for Giant Dual Fuel Box Ships
United Arab Shipping Co. (UASC) has received a $512 million loan to help finance its $1.64 billion order of 12 huge container ships, SeaNews Turkey reports.
Korea Trade Insurance Corp (K-Sure), a state-owned credit insurer, guaranteed the loan, which was made by seven banks.
UASC has ordered five 18,000 twenty-foot equivalent unit (TEU) ships and seven 14,000 TEU vessels from Hyundai Heavy Industries (HHI), with delivery scheduled between November 2014 and January 2016.
"UASC is willing to pay a high price for those ships as they will be the first giant box ships capable of being powered by conventional fuel and liquefied natural gas, saving fuel costs for the owner when cheap gas becomes available in bunkering stations," K-Sure said.
The Kuwait-based ship owner also plans to raise $410 million in equity financing and borrow an additional $739 million from commercial banks.
The banks involved in the deal are Credit Suisse, Bank of America, IMG, Societe Generale, Standard Chartered, Deutsche Bank, and DNB Bank.
Det Norske Veritas, which will class the vessels, said in September that the 18,000 TEU ships, destined for the Asia-Middle East-North Europe trade, will be "some of the world's largest and greenest ships."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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