On March 2, Greek tanker shipping company Performance Shipping announced on its official website that that, through two separate wholly-owned subsidiaries, it has signed two shipbuilding contracts with China Shipbuilding Trading Co. Ltd. (“CSTC”) and Shanghai Waigaoqiao Shipbuilding Co. Ltd. (“SWS”) for the construction of two 158,000 DWT newbuilding Suezmax tanker vessels.
The vessels are expected to be delivered in October 2028 and May 2029, respectively, at a contract price of US$81.5 million per vessel. 15% of the purchase price is payable upon receipt of a refund guarantee; 10% of the purchase price is payable at each of the milestones of steel cutting, keel laying, and launching of the vessels; and the remaining 55% of the purchase price is payable upon the delivery of the vessels.
This type of Suezmax tanker is equipped with a desulfurization device, meets the International Maritime Organization (IMO) Tier III emission standards, and complies with the latest fuel efficiency and environmental regulations, which will significantly enhance the shipowner’s commercial competitiveness and long-term profitability.
Performance points out that by the time these two new vessels are delivered, approximately 25% of the global Suezmax tanker fleet will be over 20 years old, and nearly half will still be non-environmentally friendly vessels, which will support a favorable long-term supply outlook. Combined with factors such as continued growth in global energy demand, geopolitical reshaping of trade flows, and rising ton-mile demand, Performance believes that under these circumstances, the new vessels will secure high-quality charter contracts even before delivery.
Commenting on the contracts, Andreas Michalopoulos, the Company’s Chief Executive Officer, stated:”The signing of these two Suezmax newbuilding contracts expands our presence in a segment with constructive medium- and long-term market fundamentals. Our fleet is primarily comprised of Aframax/LR2 vessels, and with two Suezmax tankers currently on the water, this transaction is poised to double our exposure to the segment, reflecting our disciplined capital allocation approach and confidence in the Suezmax market.”
According to its official website, Performance Shipping is a global shipping company focused on the tanker sector, currently operating its fleet through spot voyages, joint venture arrangements, and time charters.
As of January 13, 2026, Performance owned 12 tankers, including 9 Aframax tankers and 2 Suezmax tankers, all of which are currently in operation; in addition, a newly built LR1 product tanker is expected to be delivered in early 2027, which is being built by Yangzijiang Shipbuilding.
It is also worth noting that the two Suezmax tankers mentioned above are not the first new shipbuilding projects undertaken by Waigaoqiao Shipbuilding for Performance. Previously, the two parties had cooperated to build three vessels, all of which were 114,000 DWT LNG-ready Aframax/LR2 product tankers.
All three Aframax/LR2 product tankers were ordered in 2023. The third vessel, “P. MARSEILLE”, was completed and delivered on January 14, 2026, marking the completion of the three Aframax tanker series project built by Waigaoqiao Shipbuilding for Performance.
In addition, Performance’s tanker order is the second shipbuilding contract that Waigaoqiao Shipbuilding has disclosed in 2026.
On February 27, LC Logistics announced that it had placed an order with Waigaoqiao Shipbuilding for two 11,000 TEU container ships at a total cost of US$236 million. The announcement disclosed that the two vessels ordered this time have the hull numbers H1664 and H1665. Including the latest oil tanker order, the total value of the four new vessels of two types at Waigaoqiao Shipbuilding is nearly US$400 million.
