- CMES is entering the shuttle tanker segment with contract-backed Suezmax DP newbuildings, not a spot-market bet
- The move signals a shift toward project-driven offshore crude logistics
- Long-term employment underpins utilisation and cashflow visibility
China Merchants Energy Shipping (CMES) is expanding beyond its traditional deep-sea crude tanker base by moving into the shuttle tanker segment, one of the most technically demanding and project-focused niches in tanker shipping. The company’s board has approved the construction of 1+1 Suezmax DP shuttle tankers, alongside the signing of a long-term transportation agreement, marking a clear move away from pure cyclical exposure.
Contract-backed newbuilds reduce risk
Industry sources indicate the vessels are likely 154,000 dwt DP2 shuttle tankers, potentially to be built at Dalian Shipbuilding Industry Company (DSIC). While CMES has not officially disclosed the shipyard or charterer, market talk links the employment to CNOOC-related offshore operations in South America. The structure points to a utilisation-secured model, where earnings are driven by long-term contracts rather than spot volatility.
Why shuttle tankers matter
Shuttle tankers operate in offshore environments, servicing FPSOs under strict safety, positioning, and operational standards. Unlike conventional crude tankers, competitiveness in this segment depends on DP capability, crew expertise, HSE performance, and project execution, creating high entry barriers. As a result, shuttle tankers typically deliver stable, long-duration earnings and closer customer relationships.
Capability-led expansion
Chinese yards have already shown they can meet these standards. DSIC’s delivery of the “NS Pioneer”, built to Petrobras specifications for Brazil’s deepwater fields, demonstrated competitive DP shuttle tanker capability. Internationally, Maran Tankers followed a similar path, expanding into the segment through newbuildings and later acquiring Altera Shuttle Tankers, forming Maran Shuttle Tankers with operations spanning Brazil, the North Sea, and Canada.
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Source – Xinde Marine News
