Concordia Maritime considers tanker to containership conversions

The assignment includes preparation for “basic design” class approval.

Concordia Maritime states that the container segment has shown strong growth in recent years, driven by disruptions to international logistics as well as more structural factors. According to initial assessments, the P-MAX vessels’ two engines, with full redundancy, and other dimensions make them possible to convert to container vessels with a capacity of approximately 2,100 TEU.

Still, there are a number of technical and market challenges associated with converting P-MAX tankers to container ships, and there is a risk that the study will lead to that the project will not be concluded.

The technical design study is expected to be completed by the end of Q2 2022 and – if the result is positive – it will be followed by discussions with shipyards and possible charterers to explore potential interest. A full conversion is expected to take approximately 3–5 months.

P-MAX tankers are considerably wider than traditional MR tankers and are therefore able to carry up to 30% more cargo, allowing them to compete for cargo in both the MR and Panamax segments. The vessels are built with double systems for propulsion and manoeuvring, engines, shafts, generators, control and fuel systems, rudders and propellers. The engine rooms are separated by fireproof and watertight bulkheads, and the bridge is equipped with a co-pilot system.

Concordia Maritime owns nine P-MAX vessels, some are ice class 1B and two are ice class 1A, some have been converted to IMO3 class after delivery, which means that they can also carry vegetable oils and light chemicals.

In January 2022, the company sold the P-MAX vessel Stena Perros (65,000 dwt, built in 2007) to an oil company operating in Africa. “Despite existing charter agreements, the continued weak tanker market poses challenges for Concordia Maritime. The sale of Stena Perros is aimed at improving the company’s financial position and is in line with the bank agreement signed in autumn 2021. Further sales cannot be ruled out in the future unless we see a rapid recovery in the tanker transport market,” says Concordia Maritime CEO Erik Lewenhaupt at the time.