Torm Company, owner of tankers listed in Copenhagen and New York, released new details of its recent contracts in its third-quarter financial results and confirmed that these agreements were signed after the end of September.
Expansion of Tanker Construction Program
This move marks another step in Torm's return to direct tanker construction contracts, following a series of investments in MR tankers at Chinese shipyards. Torm has also activated options for two additional new MR tankers in the third quarter, which upgrades its current program at Zhoushan Changhong International Shipyard in China to a firm order of eight tankers.
Contract Details and Delivery Timeline
Six tankers with a capacity of 50,000 deadweight tons (dwt) are expected to be delivered in 2029, while two additional tankers will be delivered in 2030. Shipping sources estimate that the cost of each of these tankers, equipped with a Scrubber system, will be around $46 million, thus the total value of the eight-tanker program is approximately estimated at $368 million.
Torm has also secured options for two more new MR tankers, which will likely further expand this program. Meanwhile, Torm continues to sell its older tankers and sold the LR1 tanker Torm Venture built in 2007 and the MR tanker Torm Laura built in 2008 in the third quarter.
Status of Torm's Fleet
These sales have resulted in Torm reducing its operational fleet to 95 product tankers by the end of September, excluding tankers currently under construction. These developments reflect Torm's ongoing efforts to modernize and improve its fleet.
Read more: Iranian Tankers Successfully Break Through U.S. Maritime Blockade · Tankers and Fuel Smuggling Shipments at the Iran-Pakistan Border
