Shipbrokers revealed that Union Maritime, a UK-based diversified shipping company led by Laurent Cadji, has signed a letter of intent (LOI) with Wuhu Shipyard for the construction of 2+2 215,000 DWT Newcastlemax bulk carriers. Each vessel is valued at approximately $76 million. If all optional vessels are exercised, the total value of the four newbuildings would reach $304 million. The first two vessels are scheduled for delivery in 2028.
Should this letter of intent be converted into a formal shipbuilding contract, it would mark a milestone for both the shipowner and the shipbuilder. Not only would it represent Union Maritime’s first order for a Newcastlemax bulk carrier, but it would also signify Wuhu Shipyard’s first undertaking of a large-scale vessel construction project.
Union Maritime is known for its modern tanker fleet, ranging from medium-sized tankers to Aframax/LR2 vessels, and currently operates over 70 vessels. Regarding new ship orders, the shipowner currently has over 30 vessels under construction, with the vast majority of recent orders being for chemical tankers and product tankers, many of which are being built by Wuhu Shipyard.
According to incomplete statistics, since 2023, Union Maritime has placed orders for nearly 20 new vessels at Wuhu Shipyard, mainly 50,000 DWT product tankers and 18,500 DWT methanol-reserved product tankers/chemical tankers, with delivery dates scheduled until 2028.
In the dry bulk sector, Union Maritime currently operates approximately 10 vessels ranging in size from Ultramax to Newcastlemax. S&P data shows that the owner’s only Newcastlemax bulk carrier is the “Cape Rigi”, built in 2016 and acquired in 2024.
This order for up to four 215,000 DWT bulk carriers from Wuhu Shipyard marks Union Maritime’s official entry into the Capesize-plus newbuilding market, aiming to further expand its dry bulk shipping business on top of its existing large tanker fleet.
This large bulk carrier order is also of great significance to Wuhu Shipyard. If the order is finalized, it will be the first time this century-old shipyard has undertaken the construction of a large vessel. The largest vessel the shipyard has previously built was an 89,000 DWT Kamsarmax bulk carrier, ordered by AVIC COSCO between 2023 and 2024, with a quantity of 10 vessels.
As the largest shipbuilding enterprise in Anhui Province, Wuhu Shipyard is actively promoting its development strategy of “moving towards rivers and the sea”.
Earlier this year, it was reported that Wuhu Shipyard had leased two of Rongsheng Heavy Industries’ four dry docks, thus gaining the capacity to build vessels with a deadweight tonnage of over 100,000 tons, including large vessels such as Newcastlemax bulk carriers and Very Large Crude Carriers (VLCCs).
It is reported that Union Maritime’s bulk carrier order, involving four 319,000 DWT VLCCs related to Greek shipowner Navios Maritime, will be built at Rongsheng Heavy Industries’ new plant.