Fujian Guohang drops two bulker orders at Jiangsu Haitong

Fujian Guohang Ocean Shipping, a prominent player in China’s bulk shipping sector, has decided to scrap its plans for two bulk carriers originally slated for construction at Jiangsu Haitong Offshore Engineering Equipment. The company’s board has officially approved the termination of the construction contract, citing a strategic shift towards international trade routes as the primary reason for this decision.

Strategic Shift in Focus

The decision to halt the construction of the two 73,800 deadweight tonnage (dwt) bulk carriers comes after the company recognized that these vessels no longer align with its evolving business strategy. Initially part of a larger order signed in January 2023, these ships were intended for domestic dry bulk operations. However, Fujian Guohang noted that adapting them for international routes would necessitate significant modifications to their hull structure, load capacity, and seaworthiness standards. Such extensive overhauls would not only be costly but would also render the vessels uncompetitive compared to designs specifically tailored for export.

Fujian Guohang emphasized that continuing with the domestic bulk carriers would not serve its long-term development goals or make efficient use of its financial and operational resources. The company is now focusing on expanding its fleet to better serve both domestic and international markets. This strategic pivot reflects a broader trend among shipping companies to adapt to changing market demands and capitalize on global trade opportunities.

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Future Fleet Developments

Fujian Guohang has been recognized as one of China’s most active private bulk shipping companies. Earlier this year, it placed an order for four firm 73,800 dwt vessels at Jiangsu Haitong, valued at approximately $128 million. In a move towards sustainability, the company is also pursuing larger, more environmentally friendly projects, including a series of up to 10 methanol-ready kamsarmaxes at Wuhu Shipyard, with deliveries expected to commence in 2026.

Currently, Fujian Guohang’s fleet consists of 12 owned bulk carriers, with two handysize units under agreement for sale. Additionally, the company has as many as 16 newbuilds in the pipeline, indicating a robust commitment to expanding its operational capabilities in the competitive shipping market. As the company continues to evolve, its focus on international trade routes positions it well for future growth and success.