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Polaris ink USD 800M Deal for 10 VLOCs at HHI

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Polaris ink USD 800M Deal for 10 VLOCs at HHI
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South Korea dry bulk owner and operator, Polaris Shipping has signed a deal worth USD 800M for ten 325,000 DWT Very Large Ore Carriers (VLOCs) with shipbuilder, Hyundai Heavy Industries (HHI).

The contract for the newbuilds was signed on September 25, and HHI revealed in a regulatory filing that it is scheduled to be delivered in April 2021.

HHI said “The contract is the largest single order in the last five years since HHI received an order of ten large-sized containerships from a Greek shipping company in 2012.

The ten bulker will measure at 340m in length, 62m in width and 29.8m in height. They will be designed as eco-friendly ships applying LNG Ready design to meet environmental regulations and reduce fuel consumption, and equipped with a ballast water treatment system and a desulfurization equipment scrubber.

“Even under unfavorable market conditions, we have proven our competitiveness with a big order contract in five years. We are beefing up our marketing efforts to meet clients’ needs on the back of our eco-friendly technologies.” HHI commented.

So far, Polaris Shipping has ordered for 20 vessels from HHI and seven has been delivered including four 250,000 ton VLOCs ordered in 2013.

The total number of ships HHI Group won so far this year is 99 ships worth USD 5.8 billion, which is a 500% plus increase for the comparable period last year when it clinched 20 ships worth USD 2 billion.

The announcement came as Polaris has been linked to a long-term contracts of affreightment (COAs) of between 20 years and 25 years with Brazilian mining giant Vale.

Vale is said to be hiring about 30 Valemax newbuildings being ordered by seven different shipping companies, including Polaris.

Other bulker owners identified as providers of newbuilding tonnage are SK Shipping, Korea's Pan Ocean, H-Line Shipping, Korea Line Corp (KLC), China Ore Shipping (Cosco) and China’s ICBC Financial Leasing (ICBC FL).

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