Hong Kong-based dry bulk shipowner and operator Pacific Basin Shipping has announced adjustments and an expansion to its newbuilding program: the four dual-fuel Ultramax bulk carriers ordered in 2024 will now be built to run on conventional fuel, while the company retains options for two additional dual-fuel Ultramax bulk carriers, all to be constructed by Japanese shipyards; it has also placed an additional order for two new vessels with a Chinese shipyards.
On April 16, Pacific Basin Shipping announced on its official website that it had reached an agreement with Nihon Shipyard Co. and Mitsui & Co. to terminate agreements made in November 2024 for the construction of four 64,000 dwt dual-fuel Ultramax newbuilding vessels.
Pacific Basin Shipping cited the following reason for the cancellation: uncertainty has once again arisen regarding the timeline and final form of the global regulatory framework aimed at promoting the transition to green fuels in the shipping industry.
Replacing these terminated commitments, Pacific Basin has simultaneously entered into new agreements with Nihon Shipyard and Mitsui & Co. to purchase four conventionally-fuelled 64,000 dwt Ultramax newbuilding vessels of the latest fuel-efficient design for an aggregate consideration of US$156.8 million (US$39.2 million each) and with expected delivery between 2028 and mid-2029.
According to the original shipbuilding contract disclosed by Pacific Shipping in November 2024, the unit price for each dual-fuel bulk carrier was $46.5 million, with a total contract value of $186 million, and the agreed delivery dates were between 2028 and 2029. In comparison, the unit price of the newly signed contract is $7.3 million lower than that of the original order, resulting in a total reduction of $29.2 million; regarding the delivery schedule, the new contract explicitly stipulates a delivery deadline of mid-2029.
The agreement with Mitsui & Co. includes an option to acquire two 64,000 dwt dual-fuel (methanol/fuel oil) Ultramax newbuilding vessels, exercisable by the end of February 2027, for a total consideration of US$91 million (US$45.5 million each) and with expected delivery between April 2030 and March 2031.
Although Pacific Basin Shipping has adjusted its investment strategy regarding orders for green-fuel vessels, the revised shipbuilding contracts retain two optional orders for dual-fuel vessels, demonstrating that Pacific Basin Shipping remains confident in methanol fuel.
Pacific Basin Shipping stated that this move not only ensures the company’s flexibility to re-enter the dual-fuel vessel market at the appropriate time, but also enables it to continue investing in energy-efficiency upgrades, prioritize access to alternative fuels, and prepare for stricter future greenhouse gas regulations.
Unconnected with the above transactions, Pacific Basin has also entered into shipbuilding contracts with Jiangmen Nanyang Ship Engineering Co., Ltd. (“JNS”) to order two 40,000 dwt Handysize newbuilding vessels for a total consideration of USD59.6 million (US$29.8 million each) and with expected delivery in the second half of 2028. The vessels have been contracted on substantially the same terms and will share the same latest, fuel-efficient, open-hatch and logs-fitted design as the four Handysize newbuildings that the Company ordered and announced on 23 December 2025.
It is worth noting that the shipbuilding contract signed with JNS in 2025 marks the first time in 11 years that Pacific Basin Shipping has placed an order with a Chinese shipyard; previously, the company had tended to work with Japanese shipyards.
Mr. Martin Fruergaard, CEO of Pacific Basin, said: “The disciplined renewal and growth of our fleet with modern, efficient ships is a core priority for Pacific Basin, so that we can continue to meet strong customer demand, comply with tightening fuel-efficiency regulations, increase our market outperformance and deliver long-term shareholder value. These newbuilding commitments align well with that priority, and the importance of having such vessels of super-efficient designs cannot be overstated in the current high-fuel-cost environment.
The transactions have been agreed on attractive terms in today’s market for newbuildings delivering in 2028 and first half 2029, and with shipbuilders of strong reputation who we know well.
Converting our order for four dual-fuel Ultramax newbuildings to conventionally-fuelled vessels reduces unnecessary near-term capital expenditure and is a financially prudent response to renewed uncertainty around the timing and final shape of a global regulatory framework to drive the maritime green fuel transition following the failure to adopt IMO’s previously agreed Net-Zero Framework (NZF) in October 2025 amid political divisions between member states.