6 ships worth 2.1 billion yuan! Huanghai Shipbuilding wins intercontinental shipping product oil tanker order

6 ships worth 2.1 billion yuan! Huanghai Shipbuilding wins intercontinental shipping product oil tanker order

After the first order in the first half of the year, Intercontinental Shipping continued to expand its product oil tanker fleet, ordering 6 50000 deadweight ton MR type product oil tankers from Huanghai Shipbuilding.

According to Trade Wind News, this order was ordered by Seacon Shipping, an indirect wholly-owned subsidiary of Intercontinental Shipping, and GHC Shipping, a newly established joint venture between Huanghai Shipbuilding, as the shipowner. The new ships are scheduled to be delivered gradually from 2026 and will be leased by Seacon Shipping bareboat. The unit price of each new ship shall not exceed 50 million US dollars, and the total value of the six new ships is approximately 300 million US dollars (about 2.106 billion yuan).

As a reference, Clarkson's data shows that the current price for a new 47000-51000 deadweight ton oil tanker is approximately $52 million, an increase of 11% compared to $47 million in the same period last year.

It is reported that this type of ship will be equipped with 14 cargo holds, independent cargo hold pipelines, and hydraulic submersible pumps, meeting the requirements of the Energy Efficiency Design Index (EEDI) Phase III and IMO Tier III emission standards.

Intercontinental Shipping entered the refined oil tanker market for the first time at the beginning of this year, partnering with China Shipbuilding (Hong Kong) Shipping Leasing through Seacon Shipping to order four 50000 deadweight ton MR type refined oil tankers from China Shipbuilding Chengxi. The cost of each new ship for the order from China Shipbuilding Chengxi is approximately 45 million US dollars, and two ships will be delivered in 2025 and 2027 respectively.

It is understood that Intercontinental Shipping was established in 2012 and is a comprehensive shipping service provider. Its business has expanded from ship management services to shipping services, providing customers with one-stop shipping solutions along the value chain of the maritime industry. In terms of the number of ships providing third-party management services, InterContinental Shipping ranked first among ship management service providers headquartered in China in 2021. With a total fleet capacity of approximately 1.26 million deadweight tons and a dry bulk cargo fleet capacity of 1.15 million deadweight tons for international routes, Intercontinental Shipping is the fifth largest shipping service company and the fifth largest dry bulk shipping company headquartered in China.
As of June 30, 2024, Intercontinental Shipping has a fleet of 30 vessels consisting of 20 bulk carriers and 10 product/chemical tankers, with a total deadweight tonnage of approximately 1.45 million tons. In the first half of 2024, InterContinental Shipping's net profit increased by 156.5% year-on-year, reaching $32.6 million, compared to $12.7 million in the first half of last year. Revenue increased by 15.6% year-on-year, reaching 137.8 million US dollars.

Similar to intercontinental shipping, Huanghai Shipbuilding also entered the field of MR type product oil tanker construction for the first time this year. In May of this year, Huanghai Shipbuilding received its first order for 2+2 50000 deadweight ton MR type product oil tankers from a Hong Kong company under the New Mileage Group. Prior to this order, Huanghai Shipbuilding had only delivered two small oil tankers a few decades ago. Afterwards, Huanghai Shipbuilding received an order from Greek shipowner Monte Nero Management for a total of four 50000 deadweight ton MR type product oil tankers.

It is reported that Huanghai Shipbuilding was founded in 1944. In recent years, the company has actively responded to the national "Maritime Power" strategy, seized the historical opportunity of the transformation of old and new kinetic energy, focused on structural adjustment and product transformation, and embarked on a development path with Huanghai characteristics in the fields of large passenger roll on/roll off ships, passenger and cargo ships, multi-purpose heavy lift ships, and large offshore fishing vessels. At present, Huanghai Shipbuilding has developed into an important base for the construction of passenger roll on/roll off ships, multi-purpose heavy lift ships, and special ships in China.

Including the latest orders, Clarkson's data shows that currently Huanghai Shipbuilding holds a total of 56 orders of 1.6836 million deadweight tons, including 16 multi-purpose ships, 12 chemical tankers, 11 container ships, 4 open bulk carriers, and 13 other ship types, with delivery scheduled for 2027.