Recently, Franbo Lines announced that it would order four 63500 dwt Ultramax bulk carriers in Chinese Mainland shipyards. The new ships are expected to be delivered in May, July, August and November 2025, with the cost of each ship not exceeding 32.5 million dollars and the total transaction amount of about 130 million dollars (about 941 million yuan).
As a reference, Clarkson data shows that the current cost of a 61000-64500 deadweight ton Ultramax bulk carrier is approximately $34 million, a 4% increase from $32.75 million in the same period last year.
It is understood that the order from Zhengde Shipping was received by Jiangsu Haitong Marine Engineering Equipment Co., Ltd. The new ship will use traditional fuel and comply with Tier III NOx standards. Zhengde Shipping has finalized long-term charter agreements with Singapore and Hong Kong charters for these new ships, with an estimated gross profit margin of about 45%, significantly higher than pre pandemic levels.
This is the first cooperation between Zhengde Shipping and mainland shipyards, breaking away from the traditional practice of only booking ships from Japanese shipyards. Zhengde Shipping explained that these four ships were a shipbuilding gap created by mainland shipyards through the rearrangement of delivery docks. With most shipyards around the world only having available docks in 2027, these new ships can begin delivery next year.
In addition to earlier delivery times, executives at Zhengde Shipping revealed that competitive shipping prices were also one of the reasons why the company chose Haitong Ocean. The executive said, "We have inspected the ships built by Haitong Ocean and found that they are of good quality. The new ships will also be equipped with equipment made in Japan."
It is understood that Zhengde Shipping was established in 1998, with a deep focus on customer groups from its early ship port agency business. Initially, it mainly operated bulk cargo between the two sides of the Taiwan Strait and South Asia, gradually expanding outward to the Far East route, and then transforming into a shipping company on the five continents of the world, aiming to become a global benchmark shipping group.
Zhengde Shipping's main customers are large shipping groups in Japan and Europe and America, with a fleet covering multifunctional heavy lift general cargo ships, bulk carriers (mainly flexible and ultra flexible), and planned construction of environmentally friendly and energy-saving fleets, as well as continuous replacement of old and new ones, to strengthen the ability of ships to navigate global routes, and to adhere to high-tech, efficient, and high-value maritime services to enhance competitive advantages.
At present, Zhengde Shipping is accelerating the renewal of its fleet and actively expanding its fleet. By building energy-saving ships that comply with the new emission reduction regulations of the International Maritime Organization and meet the requirements of international tenants for energy-saving ships. When the company went public in 2014, there were only 7 bulk cargo ships of around 10000 tons. After obtaining a specialized captain's lease for wires and cables, the company ordered 5 bulk cargo ships of 17000 tons from Honda Heavy Industries in Japan.
Afterwards, in 2021, Zhengde Shipping began to order two 40000 ton flexible bulk carriers from three Japanese shipyards - Shin Lai Island Shipyard, Odao Shipyard, and Hakodate Dock. Among them, four ships from Xinlai Island Shipbuilding and Oudao Shipbuilding have been delivered last year, and two ships from Hakodate Shipyard will be delivered within this year.
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