China into VLCCs

China’s major ocean shipping business, China Shipping Group Company (CSGC), signed a contract to build four VLCCs. The four 308,000 DWT vessels will be built by China State Shipbuilding Corporation (CSSC).

CSGC will have 12 VLCCs by 2010 giving a total carrying capacity of 8 million tonnes.

Currently, CSGC has three VLCCs and had already placed an order with Dalian Shipyard for five other VLCCs for delivery between 2009 and 2010. Industry experts predict that, with the expanded fleet, about half of China’s imported crude oil and processed oil will be carried by Chinese owned tankers after 2010.