High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
The National Shipping Company of Saudi Arabia (Bahri) has signed contracts with South Korea’s Hyundai Samho Heavy Industries (HSHI) for the construction of 5 very large crude carriers VLCCs.
The VLCCs will be delivered during 2017. The contract also includes an option for additional 5 more ships.
The vessels will have a capacity of 300,000 DWT and built to the latest environmental and fuel-efficient technical specifications.
Bahri says that the signing of the contracts is for continuous renewal of the current fleet to meet the needs of the local and global markets. The company says it will announce the financing details at a later time.
With a fleet of 31 VLCCs, Bahri is the exclusive provider of VLCC crude oil shipping services to state-owned Saudi Aramco under a long-term agreement signed in 2012. Bahri also owns 24 chemical carriers , 6 Ro-Ro vessels and 5 bulk carriers.
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