Cargill to support construction of bulkers quartet
CSSC Leasing orders 4 mini-capesize at Wenchong backed by commodities giant's charter
Cargill has signed a deal with CSSC Leasing, the leasing division of China State Shipbuilding Corporation (CSSC), to time-charter 4 new baby-cape vessels (ranging between 100,000 and 120,000 dwt) that will be built by CSSC’s Huangpu Wenchong Shipbuilding and delivered throughout 2020, with an option for 2 more vessels.
The state-owned CSSC also owns shipbuilders such as Shanghai Waigaoqiao Shipbuilding, Hudong-Zhonghua Shipbuilding, Chengxi Shipyard, and Jiangnan Shipyard. Shipmanagement company Wah Kwong Group will oversee the technical management and crewing.
“Cargill continues to modernize its fleet to provide long-term competitiveness and environmental performance. These vessels will be among the most efficient in the market. Every aspect of the design, build and management ensures they will perform at the highest level” stated Jan Dieleman, president of Cargill’s ocean transportation business.
In December 2017, Cargill confirmed that it would take five 208,000 dwt Newcastlemax bulk carriers on a long-term timecharter from China Development Bank Financial Leasing. These ships are being built by Yangzijiang Shipbuilding for delivery in 2019 and 2020.
Cargill provides bulk shipping services and charters 650 dry bulk and tanker vessels per annum.Past spring the multinational told to be going to exit its brief flirtation with shipowning; in fact Great Wave Navigation, a joint venture with Mitsui which has 3 capesizes on order due for delivery in 2020, will remain an isolated case, since Cargill’s interest in ownership is purely from a trading asset play perspective and being a shipowner is not part of the commodities business.