China’s Shanghai Waigaoqiao Shipbuilding (SWS) inked a letter of intent (LOI) for construction of three 180,000 dwt capesize bulkers with Cargill JV.
The contract value is said to come to $142.5m in total with no options believed to be attached.
Market players said that Cargill put pen on the LOI as a shareholder with an unnamed partner company through a recently established joint venture which Cargill secures an equity stake.
An official at Cargill said that the newbuilding contract is not a part of a strategy announced back in 2011, which is to expand tonnage with owned ships in the long haul, but the company is seeking to sell the ordered vessels in the mid and long-term which is understood to be a kind of asset play.