Four ships worth 1.2 billion! Italian shipowner returns to Chinese shipyards to place orders.

After a two-year hiatus, Italian product tanker owner d'Amico International Shipping (DIS) has launched a new round of fleet renewal plans and is placing orders for new vessels with Chinese shipbuilders.

Recently, DIS announced that it has signed a 2+2 shipbuilding contract with Guangzhou Shipyard International for the construction of four 40,000-dwt MR1-type product oil tankers. The first two new vessels are expected to be delivered in April and July 2029, respectively, and the optional order will become effective within three months. Each new vessel is estimated to cost approximately US$43.2 million, bringing the total value of the four new vessels to about US$172.8 million (roughly RMB 1.208 billion).

For reference, according to Clarkson’s data, the current price of a newbuild oil tanker with a deadweight tonnage of 37,000 to 41,000 tons is approximately US$45.5 million (about RMB 322 million), down roughly 7% from US$49 million in the same period last year.

DIS CEO Carlos di Mottola stated that this new fleet of vessels will become the most efficient MR1-type ships in the company’s fleet. Under the designed draft conditions, these new vessels are expected to reduce daily fuel consumption by approximately 4 tons compared to existing environmentally friendly ships, while also increasing their cargo capacity by about 4,000 cubic meters. The new vessels will feature a design that accommodates methanol fuel, have undergone certification for biofuel use, be equipped with shore-power systems, and incorporate enhanced cybersecurity and resilience against cyber risks in their design.

This order is part of DIS’s long-term fleet renewal program. Over the past two years, the company has gradually sold off its four oldest vessels. Di Mottola pointed out that currently, the number of outstanding orders for MR1-type vessels is relatively low, the global fleet is aging, and charterer demand remains stable—factors that have all prompted the company to decide to order new ships.

According to Clarkson’s data, currently, the share of MR-type oil tankers with deadweight tonnages ranging from 40,000 to 55,000 tons in the existing fleet is only 13.8%, lower than the overall share of finished-product tankers in the order book, which stands at 16.3%. Including larger-sized LR1 and LR2 types, the average age of the entire finished-product tanker fleet currently stands at 14.1 years.

The latest order is also DIS’s first new order since April 2024. At that time, the company placed an order with Yangzijiang Shipbuilding—New Yangzijiang Shipbuilding for two LR1-type oil tankers with a deadweight of 75,000 tons each. Subsequently, it confirmed the execution of an optional order for an additional two vessels of the same type. All four new ships are scheduled for delivery in the second half of 2027.

It is understood that DIS’s current fleet includes six operational MR1 tankers, 15 owned MR2 tankers and two bareboat-chartered MR2 tankers, six owned LR1 tankers, and four LR1 tankers currently under construction. Following the sale of older vessels, more than 90% of the company’s fleet now features energy-efficient and environmentally friendly designs.

It is understood that Guangzhou Shipyard International is the leading shipyard in China for building MR-type product oil tankers. According to Clarkson’s data, in the current 25,000-55,000 deadweight tonnage MR/Handysize product oil tanker segment, Guangzhou Shipyard International ranks first in China and second globally in terms of order backlog, with a total of 27 vessels—second only to South Korea’s HD Hyundai Mipo Dockyard (33 vessels).

Excluding the latest orders, according to Clarkson’s data, as of now, Guangzhou Shipbuilding International has a total of 94 vessels on hand, with a combined deadweight tonnage of 6.74 million tons. These include 16 car carriers, 30 chemical tankers, 17 product oil tankers, 18 container ships, 7 ro-ro passenger ferries, and 6 other types of vessels. Delivery schedules extend through 2029.