Order 18 more! Shipping giants return to Chinese shipyards

Singapore shipping giant Eastern Pacific Shipping (EPS) continues to increase its presence in the regional container ship market. Following the order from China Merchants Industrial Jinling Shipyard, EPS has once again signed a contract with Mawei Shipbuilding to build up to 18 branch ships, accelerating its expansion pace.

According to Trade Wind News, EPS recently signed a contract with Mawei Shipbuilding, a subsidiary of Fujian Shipbuilding Administration, to build 12+6 1800TEU container ships, with the new ships scheduled to be delivered in 2028. Due to the equipped loading and unloading equipment, the cost of the vessel is relatively high, with a total transaction amount of $680 million (approximately RMB 4.883 billion), equivalent to a single ship price of approximately $37.78 million.

As a reference, Clarkson's data shows that the current price for a new 1800-2100TEU container ship is about $32 million, which is the same as the $32 million price in the same period last year.

Sources have revealed that EPS's new ships are not speculative orders, but have already signed a long-term charter contract with the world's third-largest shipping company, CMA CGM, with specific rental and lease terms yet to be disclosed.

In July this year, it was reported that Dafei was planning to order a large number of small and medium-sized ships, ranging from 1000TEU to 6000TEU. Some of these new ships will be ordered by Dafei as the shipowner, while others will be obtained through leasing from the shipowner.

It is worth mentioning that last year, Dafei reached an agreement with EPS to lease 12 18000TEU and 4 8400TEU dual fuel LNG powered container ships ordered by EPS in the new era shipbuilding. These new ships will be delivered gradually from 2026 to 2028; In addition, six 2900TEU container ships ordered by EPS from Mawei Shipbuilding in 2022 are currently operated by Dafei Leasing.

In addition to the 18 orders from Mawei Shipbuilding, EPS also ordered 6 1800TEU container ships from China Merchants Industrial Jinling Shipyard last month, which will be delivered gradually from the end of 2027 to 2028. These 6 ships do not come with loading and unloading equipment, so the cost is lower than the order from Mawei Shipbuilding, about 30 million US dollars per ship, and the total value of the 6 ships is about 180 million US dollars (about 1.293 billion yuan). It is reported that EPS is in talks with potential lessees regarding the charter contracts for these six new ships.

It is reported that EPS is one of the world's largest independent ship owners with over 60 years of outstanding history in the shipping industry. Headquartered in Singapore, it has 6000 seafarers and more than 450 shore based employees, managing a diversified fleet of over 270 vessels, including bulk carriers, container ships, automobile transport ships, oil tankers, oil tankers, LPG ships, and LNG ships, with a total deadweight tonnage of 28 million tons and an average age of no more than 10 years, including more than 80 dual fuel ships.

Since 2021, EPS has been active in the new shipbuilding market, ordering over 120 new ships from shipyards in China, Japan, and South Korea. According to Clarkson's data, as of now, EPS is building a total of 110 new ships, including container ships, automobile transport ships, liquefied gas carriers, oil tankers, etc. By 2029, when all new ships under construction are delivered, EPS's fleet size is expected to exceed 300.

EPS has a long-term cooperative relationship with shipyards under Fujian Shipbuilding Administration, including Mawei Shipbuilding. In 2022, EPS signed an order for 8 2900TEU container ships with Fujian Shipping Administration. Last year, EPS ordered 4+2+2 MR type product oil tankers from Southeast Shipbuilding under Fujian Shipbuilding Administration, and ordered 8 dual fuel vehicle transport ships and 4 LR2 type product oil tankers from Xiamen Shipbuilding Industry.

For Mawei Shipbuilding, EPS' latest order is its rare container ship order in recent years. According to Clarkson's data, Fujian Mawei Shipbuilding currently holds a total of 46 orders of 1.237 million deadweight tons, including only one container ship, the 406 TEU teaching electric container ship ordered by Intercontinental Shipping in June this year. In addition, there are 12 liquid cargo ships, 6 automobile transport ships, 14 platform supply ships (PSVs), 11 open bulk carriers, and 2 other ships, with a delivery date scheduled for 2029.

It is reported that Mawei Shipbuilding was founded in 1866, then known as Fujian Shipbuilding Administration, and is the first shipbuilding enterprise established in China with a history of 159 years. In 2016, Mawei Shipbuilding moved to Cuolu Island, Lianjiang. The factory covers an area of about 1060 mu, with a medium-sized marine dock (280 meters long, 82 meters wide and 13.5 meters deep), a 700 ton gantry crane, three outfitting docks with a shoreline length of 1326 meters, and a hull joint workshop for 80000 tons of steel processing.

Mawei Shipbuilding is the largest state-owned shipbuilding enterprise in Fujian Province and an important shipbuilding production base in southern China. It has the ability to research and develop, design, manufacture, and repair various types of ships below 100000 tons, especially in the design and construction of high value-added marine equipment, tuna purse seine fishing vessels, deep-sea aquaculture equipment, multi-purpose container ships, bulk carriers, and oil tankers.