Chinese Taiwan-based shipowner Yang Ming Marine Transport Corporation’s (“Yang Ming”) subsidiary Kuang Ming Shipping has re-entered the newbuilding market, ordering four Ultramax bulk carriers from Japanese shipyards, demonstrating its long-term confidence in dry bulk demand.
According to documents submitted by Yang Ming to the stock exchange, Kuang Ming Shipping has placed orders for a total of four Ultramax bulk carriers with Nihon Shipyard, Imabari Shipbuilding, and Oshima Shipbuilding. The total contract value ranges between NT$4.9 billion and NT$5.4 billion (approximately US$155 million to US$171 million).
Specifically, two vessels will be constructed by Nihon Shipyard and Imabari Shipbuilding; the remaining two will be commissioned to Oshima Shipbuilding through collaboration with Sumisho Shipping. The unit cost for each vessel in this order ranges from US$38.75 million to US$42.75 million, with specific delivery dates yet to be announced.
Kuang Ming Shipping was established in 1990, initially positioning itself as a booking agent for container shipping services under Yang Ming Marine Transport. To advance the group’s diversification strategy, it formally entered the dry bulk shipping sector in 2008. The company currently operates a fleet of 11 bulk carriers, comprising 10 owned vessels and one long-term chartered Capesize bulk carrier.
This new building order marks Kuang Ming Shipping’s first foray into the new shipbuilding market in nearly a decade. The company’s previous newbuilding project dates back to 2014-2015, when it ordered four Ultramaxe bulk carriers from Iwagi Zosen. These vessels were delivered between 2016 and 2018.