The Chinese tanker shipping company China Merchants Energy Shipping (CMES) is continuing to expand its crude oil tanker fleet. Ten new VLCCs have been ordered from Dalian Shipbuilding Industry Group via a subsidiary.
The shipping company China Merchants Energy Shipping (CMES) has placed an order for the construction of 10 additional Very Large Crude Carriers (VLCC). As confirmed by the company, the contracts were signed yesterday with the Dalian Shipbuilding Industry Group (DSIC) via its wholly-owned subsidiary Associated Maritime in Hong Kong.
Order value over €1 billion
The newbuildings are VLCCs with scrubbers. According to the company, a later dual-fuel option is also planned in the design. The total value of the order is the equivalent of around €1.08 billion. Deliveries are scheduled to take place between the first half of 2028 and the second half of 2030. Two units are already scheduled for 2028.
CMES accelerates expansion in the tanker segment
CMES justifies the order with the aim of further strengthening its own market position in the tanker segment, modernizing its fleet and expanding its competitiveness in international crude oil transport. At the same time, the company wants to take advantage of favorable market opportunities and available shipyard capacities.
Financing is to be provided from the company’s own funds and bank loans. Payments to the shipyard are to be made in six installments according to the progress of construction, including 10% at the signing of the contract, after twelve months, at the start of construction, when the keel is laid and when the ship is launched. A further 50% is due on delivery.
According to the company, the Board of Directors has already approved the investment. The approval of the Annual General Meeting is not required. It is also not a related transaction or a significant restructuring of assets.
Series 10: “Made in China”
The ships are to be built in Dalian or at affiliated shipyards. CMES plans to establish its own one-ship companies abroad to take over the newbuildings. With this major order, CMES is continuing the expansion and renewal of its tanker fleet. The shipping company is one of the most important state-owned players in the Chinese tanker market.
The Chinese shipping group China Merchants Energy Shipping from Shanghai was founded in 2004 and emerged from the China Merchants Group, which is primarily active in the transportation of energy goods and bulk goods and is listed on the Shanghai Stock Exchange.
