Japan's Doun Kisen linked to Newcastlemax newbuilding trio in China

According to shipbroking and market sources, the company has ordered three Newcastlemax bulk carriers at a Chinese shipyard. Several brokers suggest Nantong Xiangyu has secured the deal, despite being better known for building Ultramax and Kamsarmax tonnage in the dry bulk sector.

While pricing details have not been disclosed, market estimates place the cost of each Newcastlemax at around US$76M. The three vessels are expected to be delivered through Q1 2028.

Doun Kisen, which manages a fleet of over 100 vessels – with a special focus on bulk carriers – is a regular client of Nantong Xiangyu, having previously placed orders for Kamsarmax and Ultramax units. Earlier this year, the owner was also linked to a Kamsarmax newbuilding contract with Chinese yard Hengli Heavy Industries.

Muted newbuilding activity

Newbuilding activity in the dry bulk segment has been modest so far this year. In fact, Q1 2025 saw historically low ordering levels in terms of dwt. European shipowners have shown notable caution in placing new orders, leaving most activity to their Asian counterparts.

According to Allied Shipbroking, only 45 bulk carriers totalling 3.0M dwt were ordered up to the first week of May, with the majority being Handysize and Supramax/Ultramax vessels. The larger segments, such as Capesize and VLOC, have seen limited action, with just six vessels ordered so far.

BRS Shipbrokers reported in its annual review that dry bulk orders rose from 51.8M dwt in 2023 to 59.1M dwt in 2024 – marking the highest annual total in the past decade. Analysts have forecast around 40.0M dwt in newbuilding contracts for 2025.

Meanwhile, newbuilding prices have remained relatively resilient. Allied’s most recent weekly briefing shows construction costs for Capesize, Kamsarmax, Ultramax, and Handysize tonnage have declined only modestly, by between 0.7% and 2% over the past six months.

In the Newcastlemax segment, Xclusiv Shipbrokers’ most recent monthly report shows the orderbook-to-fleet ratio for this segment stood at around 19% in dwt terms as of the end of April. Furthermore, 11% of the existing fleet has now reached or surpassed 16 years of age, potentially prompting replacement orders.