BG Shipping, a Hong Kong-based company, has secured four Ultramax tankers under a lease agreement with Suyin Financial Leasing of China at Jiangsu Soho Innovation & Technology Shipbuilding. This project, collectively having a deadweight tonnage (dwt) of 256,000 tons, is recognized as Suyin's first operational lease transaction.
Contract Details and Terms
Although specific information regarding the contract value, lease duration, and construction schedule has not been disclosed, this agreement signifies the expansion of Suyin's activities in the operational leasing sector. BG Shipping, which is the international dry bulk arm of Guangxi Beibu Gulf International Port Group, has stated that it currently controls and operates over 80 tankers with a total capacity of more than 6 million tons deadweight. This number includes commercially controlled vessels and not just owned ships.
Impact on the Ship Leasing Market
The BG Shipping contract reflects Suyin's shift towards operational leasing instead of direct financing structures previously employed in the maritime transport sector. Suyin, which operates as a financial provider backed by Jiangsu Bank, had previously financed a 63,500 deadweight tanker for Jiangsu Ocean Shipping. This indicates a transformation in Suyin's relationships with the shipbuilding industry.
Overall, this agreement not only allows BG Shipping to increase its capacity but also provides Suyin with an opportunity to have a greater presence in the ship leasing market. Given the recent changes in demand and supply in the maritime transport industry, such contracts could have significant impacts on the market.
