Norwegian shipowner John Fredriksen’s appetite for newbuildings continues unabated.
The shipping titan, who invested in a series of oil and gas tankers last year,is understood to have turned his attention to bulkers and is poised to place orders for up to 14 capesize newbuildings.
They will be booked by Fredriksen’s new vehicle, Frontline 2012.
Market players say Fredriksen has inked letters of intent (LOI) with two shipyards, state-owned Shanghai Waigaoqiao Shipbuilding (SWS) in China and South Korean-owned STX Dalian.
The owner is said to have asked China State Shipbuilding Corp (CSSC)-controlled SWS to build four 180,000-dwt newbuildings, with two options attached, while at STX Dalian it is intended to build four capes, with four optional units.
Shipyard officials at SWS and STX Dalian decline to comment, as does Fredriksen.
The cost of the capes has not been disclosed but market sources say SWS is marketing its fuel-efficient vessels at $46m each, while one source says the price is even lower.
TradeWinds is told that the two yards will deliver the newbuildings in 2014 and 2015.
It is understood the deals have been under discussion for some time and are set to be finalised in the first quarter of this year.
For STX Dalian, it would be the yard’s first deal for conventional, 180,000-dwt capes since its establishment in 2008.
The yard has until now delivered pure car/truck carriers (PCTCs), 400,000-dwt very large ore carriers (VLOCs), and supramax and kamsamax bulkers. Last summer, it secured a 207,000-dwt Newcastlemax ship from Seoul-based Polaris Shipping for delivery in 2014.
Second STX Dalian contract
Fredriksen’s bulkers would be the Korean-owned builder’s second contract with the owner. Last year, Frontline 2012 penned six 50,000-dwt medium-range (MR) tanker newbuildings at the yard for delivery in 2014.
The shipowner has taken advantage of low yard prices to expand his fleet.
After establishing Frontline 2012, Fredriksen ordered a slew of oil and gas tankers and declared that the new company will be the group’s vehicle for tanker growth.
Newbuildings booked include four 115,000-dwt aframax tankers at Guangzhou Longxue Shipyard, four 84,000-cbm very large gas carriers (VLGCs) at Jiangnan Changxin and the MR tankers at STX Dalian, plus six 50,000-dwt tankers at STX Offshore & Shipbuilding in Korea.
Frontline 2012 holds options for six more MR tankers, two more aframaxes and two more VLGCs.
The company is set to decide on the options in the first quarter of 2013.
In December, Frontline 2012 disclosed that it had cancelled a second VLCC newbuilding at Jinhai Heavy Industry. The company has five units on order at Jinhai but axed the first two vessels due to excessive delays.
