Over the past period of time, Hong Kong-based South Korean shipowner Cido Shipping has spent nearly $2.7 billion on shipbuilding orders, aiming to further modernize and expand its fleet.
Cido has placed orders with Chinese and Korean shipyards for 38 newbuildings of various types, covering Suezmax tankers, LR2 tankers, MR product tankers, and car carriers, according to industry news. Among them, the tanker field is the main focus of its new shipbuilding orders, car carriers accounted for a relatively small proportion.
It is worth noting that Cido was mainly active in the market of Very Large Crude Carriers (VLCC) and MR product tankers, and the recent orders for Suezmax and LR2 tankers are the new fields for this shipowner.
Cido has signed orders for 22 new vessels of 2 types with two Chinese shipyards, sources said, specifically:
Cido has signed a contract with China Merchants Heavy Industry (Jiangsu) for the construction of twelve 7,600 CEU liquefied natural gas (LNG)-dual fuel PCTCs, with the cost of a unit at around $90 million and a total order value of around $1.08 billion (roughly RMB 7.823 billion).
This is said to be Cido’s first order for PCTCs in nearly 20 years, and is expected to be delivered between 2027 and 2030, and may also be the first time that the shipyard has scheduled deliveries until 2030.
Cido has signed a contract with Shanhaiguan Shipbuilding Industry Co., Ltd. (SHGSIC) for the construction of 10 conventionally-powered LR2 tankers, with the cost of a unit ranging from $55 million to $58.5 million, and the total value of the order ranging from $550 million (approx. RMB 3,984 million) to $585 million (approx. RMB 4,237 million), and the new vessels are expected to be delivered by 2028.
In addition to SHGSIC’s 10 conventionally-powered LR2 tankers, the remaining 16 newbuilding orders in the tanker market have all been undertaken by South Korea’s HD Hyundai Group’s shipbuilding subsidiaries, specifically:
Cido has signed a contract with HD Hyundai Heavy Industries Ulsan Shipyard for the construction of four Suezmax tankers, with the cost of a single unit of about $91 million, and the total value of the order is about $364 million (about RMB 2.637 billion). The new vessels are equipped with desulfurization towers and are expected to be delivered in 2027.
Cido has signed a contract with HD Hyundai Vietnam Shipbuilding for the construction of four 115,000 dwt LR2 tankers and 4+4 MR product tankers. Among them, the single unit cost of LR2 type tanker is about $70 million, with a total order value of $280 million, which is expected to be delivered in 2028; the single unit cost of MR product tanker is about $47 million, with a total order value of about $376 million, and the first batch of 4 units is expected to be delivered in 2027.
In addition to the above orders, Cido returns to Chinese shipyards in 2023 after a 15-year break to place shipbuilding orders for a total of 12 bulk carriers of the 82,000 dwt Kamsarmax and 64,000 dwt Ultramax from Jiangsu New Hantong Ship Heavy Industry (NHT) and New Dayang Shipyard.
Clarkson data shows that Cido Shipping has a fleet of 72 vessels. Thirty-seven of them are PCTCs, but most of them are more than 20 years old, which is one of the reasons why Cido has recently ordered PCTCS in bulk.