Another four vessels, bringing the total to 30! This private shipbuilder has surged to second place worldwide in VLCC order intake.

Jiangsu Xinhan Tong Shipbuilding & Heavy Industry has once again secured orders for four very large crude carriers (VLCCs), bringing the Jiangsu-based private shipbuilder to second place worldwide in VLCC order intake this year.

According to reports, Minsheng Financial Leasing recently placed an order with Shinhan Tong Shipbuilding for four 319,000-dwt Very Large Crude Carriers (VLCCs). The newbuilds will be equipped with scrubbers. The lead vessel is scheduled for delivery by the end of 2029, with the remaining three slated for delivery in 2030. Each ship is estimated to cost between US$120 million and US$125 million, bringing the total transaction value to between US$480 million and US$500 million—equivalent to approximately RMB 3.237 billion to RMB 3.371 billion.

For reference, Clarkson’s data show that the current price of a new 315,000–320,000-dwt conventional-fuel VLCC is approximately US$131 million, the highest level since March 2009, when it stood at US$132 million.

The four VLCCs newly ordered by Minsheng Financial Leasing will be subject to long-term time charter contracts with Clearlake Shipping, a subsidiary of Gunvor, for a period of 15 years at a daily rate of USD 43,000. Clearlake and Minsheng Financial Leasing have previously established a cooperative relationship and currently serve as the commercial manager of the 300,000‑dwt VLCC “Advantage Verity,” built in 2016, which is owned by Minsheng Financial Leasing.

According to available information, Minsheng Financial Leasing Co., Ltd. was established in April 2008 with a registered capital of RMB 5.095 billion. It was founded and is majority‑owned by China Minsheng Bank, making it one of the first five bank‑affiliated financial leasing companies in China. Over nearly two decades of development, Minsheng Financial Leasing has grown into one of China’s largest ship‑leasing firms with significant international influence, specializing in leasing for merchant vessels, offshore engineering equipment, cold‑chain logistics, distant‑water fisheries, and port facilities. The company currently operates a fleet of more than 330 vessels, with total ship‑leasing financial assets exceeding RMB 35 billion.

In 2008, Minsheng Financial Leasing made its debut in the VLCC market by acquiring two 297,000‑dwt VLCCs—“DS Vision” and “DS Venture,” both built in 2011—from the Dr. Peters Group at a price of less than US$60 million per vessel, while simultaneously entering into long‑term time charter agreements with COSCO Shipping Energy Transportation.

According to VesselsValue, Minsheng Financial Leasing currently operates a fleet that includes four VLCCs and one VLCC/FSO (floating storage and offloading vessel).

This order further underscores the rapid expansion of Shinhan Tong Shipbuilding & Heavy Industries’ VLCC business. In February 2024, the company made its debut in the construction of this high-end vessel type, securing two 319,000‑dwt VLCC orders from commodity trading giant Trafigura. In just over two years, Shinhan Tong Shipbuilding & Heavy Industries has swiftly emerged as a key player in the global VLCC market.

According to Clarkson data, global new VLCC orders have totaled 162 vessels so far this year, reaching a record high. Among them, Shinhan Tong Shipbuilding & Heavy Industry has secured 30 orders, ranking second worldwide, behind only Hengli Heavy Industry’s 58 vessels. As of now, Shinhan Tong Shipbuilding & Heavy Industry holds a total of 41 VLCC orders on hand, placing it third among single‑shipyard operators globally, trailing only Hengli Heavy Industry (82 vessels) and Dalian Shipbuilding Yard (42 vessels).

Industry insiders generally believe that Shinhan Tong Shipbuilding & Heavy Industry’s ability to deliver vessels ahead of schedule is one of its key advantages in attracting VLCC orders.

Including the latest order, Clarkson’s data show that Shinhan Tong Shipbuilding & Heavy Industries currently holds a total of 98 vessels amounting to 19.64 million deadweight tons, comprising 45 bulk carriers, 49 tankers, and 4 container ships, with delivery schedules extending through 2030.