China State Shipbuilding Corporation-affiliated Shanghai Waigaoqiao Shipbuilding (SWS) has contracted an order for a pair of capesize bulkers with the Taiwanese-listed owner Sincere Navigation.
The newbuilding bulkers cost $46.8m apiece and will be delivered in April and June of 2016. Historically low prices may have been a main reason for the owner to book order.
An official from Sincere said capesize segment which is seeing massive newbuilding orders this year is certainly worried for delayed market recovery, however, still some shipowners are looking for an low-priced ordering opportunity in a way to expand their competitiveness.
Since newbuilding prices are "currently at a quite low level", if Sincere orders in this price range, long-term profitability could be expected.