Placing an order again after two years! Greek shipowners return to Chinese shipbuilders.

After nearly two years, Greek tanker owner Performance Shipping has returned to the newbuilding market, placing an order with Waigaoqiao Shipbuilding for two Suezmax tankers.

It is reported that these two vessels will use conventional fuels, be equipped with desulfurization devices, and meet Tier III emission standards. The first vessel is expected to be delivered in October 2028, while the second vessel is scheduled for completion and delivery in May 2029. Each new vessel will cost approximately US$81.5 million, and the total transaction amount will be around US$163 million (about RMB 1.124 billion).

For reference, Clarkson’s data show that the current price of a newbuild Suezmax tanker with a deadweight tonnage of 156,000 to 158,000 tons is approximately US$87 million, representing a slight decrease from US$88 million in the same period last year.

Andreas Michalopoulos, CEO of Performance Shipping, stated: “This transaction will double our presence in the Suezmax tanker market, reflecting the company’s prudent capital allocation strategy and our confidence in this niche segment.”

Performance Shipping entered the Suezmax tanker market last October, investing $150.9 million to acquire two modern secondhand Suezmax tankers. These two vessels have already been leased on a three-year time charter to Repsol, Spain’s oil giant.

Although the two newly ordered Suezmax tankers have yet to secure charter contracts, Michalopoulos is confident that they will strike attractive charter deals in the future. He pointed out: “Against the backdrop of steadily growing global energy demand, geopolitical shifts reshaping trade flows, and a continuously rising demand for ton-miles, we believe we can lock in attractive charter agreements well before the vessels are delivered.”

Performance Shipping is a “long-time customer” of Waigaoqiao Shipbuilding. In 2023, the company placed an order with Waigaoqiao Shipbuilding for three LR2-type product oil tankers. All three vessels have now been delivered and are in operation, and each has been leased under lucrative long-term contracts with Clearlake Shipping.

In addition to the order from Waigaoqiao Shipbuilding, the company had previously placed an order with Yangzijiang Shipbuilding in May 2024 for one LR1-type product oil tanker, scheduled for delivery in January 2027. Following that order, Performance Shipping temporarily suspended its new shipbuilding activities—until this latest investment in a Suezmax tanker.

It is understood that Performance Shipping was founded in 2010 under the original name Diana Containerships. Starting in 2019, the company gradually began its transformation and, by 2020, had sold its last container ship, becoming a pure owner of Aframax tankers. Currently, its fleet owns and operates 11 tankers, including 4 Aframax tankers, 5 LR2 product tankers, and 2 Suezmax tankers.

According to Clarkson data, including the latest orders, Waigaoqiao Shipbuilding currently has a total of 79 vessels on hand, with a combined deadweight tonnage of 10.57 million tons. These include 49 container ships, 19 oil tankers, 8 car carriers, 2 floating production storage and offloading (FPSO) vessels, and 1 luxury cruise ship, with delivery schedules extending through 2029.