Weekly Newsletter

05 January 2024

Weekly Newsletter

05 January 2024

Performance Shipping orders two vessels from CSTC, SWS

The Greek operator is adding to its fleet after selling two of its oldest Aframax vessels in 2022 and 2023.

Noah Bovenizer December 29 2023

Greek shipping operator Performance Shipping has signed two contracts with China Shipbuilding Trading Co (CSTC) and Shanghai Waigaoqiao Shipbuilding (SWS) for the construction of two LNG-ready Aframax tankers. 

The $129,690,000 purchase will see the 114,000 DWT product/crude oil tanker vessels delivered in January and April 2026 and is the latest fleet expansion deal made by the company, which has also just signed a two year charter contract for the 105,408 DWT tanker M/T P. Long Beach. 

Andrea Michalopoulos, CEO of Performance Shipping, said: “The construction of these LNG-ready LR2 oil tankers, equipped with the latest high-specification engines and meeting stringent emission requirements, along with scrubbers and water ballast treatment systems, will take place at the largest and most reputable state-owned shipyard in China.” 

“These sales and acquisitions constitute our core fleet expansion and renewal strategy. We believe that tanker fleet growth will reach historical lows in the coming years and maintaining a modern fleet among an aging global fleet during periods of high seaborne trade demand will result in sustainably strong fundamentals and higher asset values,” he added. 

The orders come after the company has sold two of its oldest Aframax tankers, built in 2007, in the last few years, the M/T P. Fos in October 2022 and the $39.3m sale of the M/T P. Kikuma in November 2023, meaning its fleet now consists of seven Aframax vessels. 

In addition to the two vessels included in the recent contracts, the company also signed an order for another Tier III product/crude oil carrier with SWS in March, with that vessel expected to be delivered first in October 2025. 

CSTC and SWS are two of the most notable shipbuilding companies in Asia, previously working on China’s first domestically built cruise ship which began sea trials in July 2023

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