OAK Steamship Cohas emerged as the latest Hong Kong shipping company to jump on the bulker newbuilding bandwagon with a double Capesize order from China Shipbuilding Corporation (CSBC) of Taiwan.
The orders were placed alongside those announced on Monday by locally-listed Shougang Concord International Enterprises (SCIE) for three even larger bulkers worth almost US$150 million.
Oak's vessels are 165,000 deadweight tonnes (dwt) and are reckoned to cost the company around $44 million, which is considered to be slightly higher than normal because of the technical specifications.
Both Oak and Shougang are placing their orders as the market for large Capesize bulkers is picking up. According to British ship brokers Gibson, period rates for newbuildings are close to $20,000 a day, with overaged tonnage achieving little more than half this figure.
According to Oak Steamship director Jack Hsu, the Oak and Shougang orders were not related, and he denied broker reports that Oak planned to charter the newbuildings out to Shougang Corporation.
Oak is understood to have options for one or two additional vessels at the Taiwanese shipyard.
