d’Amico Entering LR1 Tanker Market

Borsa Italiana-listed tanker owner d’Amico International Shipping S.A. (DIS) has through its Ireland-based subsidiary d’Amico Tankers, inked a deal for the construction and sale of two new Long Range (LR1 – 75,000 DWT) product tankers with South Korean shipbuilder Hyundai MIPO Dockyard.

The ECO design vessels will be built by Vietnam-based Vinashin Shipyard and are expected to be delivered mid 2017. Each vessel has a price tag of about USD 44 million.

According to DIS, the vessels will have an attained Energy Design Index (EEDI) falling already well within the IMO phase-in 2 requirements due for vessels to be built before 31st December 2024, i.e., 25% lower than the current IMO reference line.

“Thanks to this deal, DIS will enter the LR1 segment within the product tanker market. The trend of our industry is pointing towards an expansion of the tonne/mile demand, following the concentration of the world refining capacity in the US and in the Middle and Far East. In this context, I believe LR1s, with their larger cargo capacity, will be in great demand in the years to come, thanks to their ability to carry larger quantities on the same distances. In fact, we are actually seeing a constantly growing demand from oilmajors and leading market players for these types of ships,” said Marco Fiori, Chief Executive Officer of DIS.

DIS fleet includes 52.8 double-hull product tankers (MR and Handysize) with an average age of about 7.3 years (of which 23.3 owned vessels and 29.5 chartered-in vessels). The company has currently a total of 10 new ‘Eco design’ product tanker shipbuilding contracts, which include 2 LRs, 4 MRs and 4 Handysize vessels under construction at Hyundai Vinashin Shipyard Co. Ltd. The newbuildings on order are expected to be delivered between 2015 and 2017.