South Korean and Japanese shipowners are chasing long-term BC charter contracts from state-controlled utility owner Korea East-West Power (KEW). And South Korean shipyards are competing to win newbuilding orders.
KEW is looking to fix four bulk carriers under long-term consecutive voyage contracts (CVCs) for up to 18 years. Market players say it has issued two separate tenders for the quartet, of which two have to be newbuildings.
“These two tenders are open to all Korean-registered shipping companies, including foreign-owned companies that have a registered office here,” said a shipping source in Seoul.
KEW is looking to fix a large capesize and a kamsarmax for both tenders with delivery of the first pair in 2013.
The source said, "For the second tender, KEW specifies that the duo have to be newbuildings and they have to be constructed by Korean shipyards."
KEW is said to want to take delivery of the newbuildings in the second half of 2015.
Hyundai Merchant Marine (HMM), SK Shipping, STX Pan Ocean, Hanjin Shipping and Japanese-owned NYK are understood to have put in bids for the first tender.
Newbuilding players believe Korean majors including Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, STX Offshore & Shipbuilding and Hanjin Heavy Industries & Construction will be bidding for the capesize and kamsarmax newbuildings.
They reckon STX and Hanjin will be preferred as they would be able to assign the ships to their facilities in China and the Philippines — which could give them a 10% to 20% price advantage over Hyundai and Daewoo.