Big Chinese orders on the horizon

Reports from China indicate that a private equity-led consortium has ordered 50 to 100 new container, tanker and dry-bulk ships, which will be leased to Chinese operators.

The deal is financed by a consortium led by Carlyle Group, and, with an estimated value somewhere between $5 billion and $10 billion, it is said to be one of the biggest shipping deals to date. Analysts consider that this could be the precursor of another Asian shipbuilding boom, signalling as it does a growing confidence in the Chinese economy’s export markets and China’s consequent demand for oil, gas, coal and raw materials.
It is reported that the Carlyle Group will partner Hong Kong-based Tiger Group Investments and Seaspan, also of Hong Kong. Seaspan’s fleet comprises 57 container ships, with 12 more on order, several of which are chartered to Chinese operators including Cosco.
The ships will be built in Chinese yards, where spare capacity is now available following the last pre-2009 order boom. The new orders are expected to comprise about one-third Panamax container ships, or 10,000TEU capacity, one third dry bulk carriers and the remaining third tankships. Unlike most previous Chinese ships, they will be designed with energy efficiency and low emissions very much in mind.
The recent large Maersk Line contract with DSME in Korea is thought to have acted as a catalyst for this order for big, efficient ships.