Mitsui & Co takes Kamsarmax tally to nine at Yangzijiang

Martina Li, east Asia |  6 November 2018
 

Mitsui & Co&rsquo s  total tally of Kamsarmax bulk carriers at Yangzijiang Shipbuilding has risen to nine vessels after ordering two more units from the Chinese shipbuilder, with which the Japanese trading group has a  joint venture  (JV).

It is possible that the two 82,000 dwt units are options tied to the joint venture&rsquo s maiden order, which comprised a pair of similar ships. These vessels will be delivered in 2020.

Mitsui & Co and other Japanese trading houses, known as  sogo-shosha, tend to order newbuildings that are backed by medium- to long-term timecharters or bareboat charters to commodity traders and ship operators.

It is not known whether a charterer has been secured for the newbuildings, as the group declined comment.

Mitsui & Co has a Singapore-based ship owning unit, OMC Shipping Pte Ltd, which handles chartering and technical management for the group-owned fleet.

The Japanese group also carries out shipbroking activities through a subsidiary, Orient Marine Co, Ltd.

Although Japanese shipowners have traditionally supported compatriot shipbuilders, Chinese shipyards are now more competitive because of the country&rsquo s lower wage costs and government support.

Japanese shipbuilders have focused on bulk carriers, but Chinese shipyards have been able to offer lower prices for the same ship types.

Announced on 17 September, the JV intends to boost Yangzijiang&rsquo s competency in shipbuilding while leveraging on Mitsui&rsquo s access to shipowners, as well as its extensive experience in shipowning, chartering, and the sale and purchase of vessels.

The entity will be incorporated in Panama with an initial registered share capital of USD13.2 million. Each JV partner will make an equal contribution and hold equity of 50%.

The JV is synergistic with the ship leasing activities of Yangzijiang and Mitsui. 

Subsequently, in October, Mitsui and its shipbuilding affiliate, Mitsui E& S Shipbuilding, joined forces with Yangzijiang to establish a  JV shipyard  in the Chinese shipbuilder&rsquo s base in Taicang in Jiangsu Province.

Recognised as the most successful non-state-owned Chinese shipbuilder, Yangzijiang moved into shipowning and leasing in 2012 with the establishment of Yangzijiang Shipping Pte Ltd in Singapore. The latter entity was set up to take over orders for several bulk carriers that were cancelled by customers.