China Shipping Development (Hong Kong) Marine has ordered two VLCCs (Very Large Crude Carriers) and three AFRAmaxes, which are tankers that range in size from 75,000-120,000 deadweight tons.
AFRA stands for Average Freight Rate Assessment and Aframax ships are traditionally employed on short and medium-haul crude oil trades.
The tankers will be built by China Shipbuilding and Offshore International (CSOC) and Dalian Shipbuilding Industry.
The 320,000 dwt VLCCs will cost US$191.36 million in total, while the Aframaxes (sometimes called Suezmaxes) will cost about US$159.84 million.
Tanker Operator reports the acquisition will be funded by parent China Shipping Group through a combination of bank borrowings and internal financial resources.