Al Seer Marine (ASM), a global leader in numerous marine sectors and a subsidiary of International Holding Company (IHC), has expanded its fleet with the addition of two very large crude carriers (VLCCs), says an article published in Trade Arabia.
Current market conditions
The crude oil tankers, MV Twin Castor and MV Twin Pollux, have a carrying capacity in the upper range of 320,000 deadweight tonnage (DWT), allowing for crude oil cargo, supplies, lubricant, and fuel, and have a total worth of AED404 million ($110 million).
These freshly acquired tankers are expected to return more than 20% under current market circumstances.
This is because of a projected 4% increase in worldwide tonne mile demand in 2022, as well as a shrinking global VLCC orderbook, which now accounts for 5.8% of the global fleet of 440 million DWT crude oil tankers, according to the business.
Analysing expansion
Al Seer Marine has added nine ships to its fleet and is looking at expansion opportunities in the crude and product tanker, gas tanker, and dry bulk shipping sectors, with short-term ambitions to add 10 to 15 ships by 2022.
Two 86,000 cu m very large gas carriers (VLGC) are now under development as part of a joint venture with BGN International, and the company recently bought two liquified petroleum gas (LPG) tankers worth a total of AED246 million.
Strong returns
Guy Neivens, CEO of Al Seer Marine, said: “This acquisition of two new crude oil tankers is strategically driven given the current market conditions, and we expect to see strong returns as oil demand recovers and ship recycling returns to normal levels. With 19% of existing global crude carrier supply dated at over 18 years old, they will be due for scrapping or recycling in the next few years. This will cause the global fleet numbers to shrink even further, presenting an opportune time for Al Seer Marine to expand and continue our trajectory in becoming one of the largest commercial shipping fleets in the Middle East and Asia regions.”
Large-scale manufacturing
Al Seer Marine is already a regional leader in marine services and is quickly expanding in the commercial shipping sector.
Al Seer Marine created its additive manufacturing business unit earlier this year, using the latest additive manufacturing technologies to manufacture unmanned vessels and vehicles in-house.
The business unit will also develop high-demand large-scale additive manufacturing (LSAM) products and parts for regional and global markets.
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Source: Trade Arabia
