Israeli shipowner Ray Car Carriers is behind a more than $1bn order for 10 LNG dual-fuel car carriers at China’s Guangzhou Shipyard International, with deliveries scheduled from 2029 to 2031, according to China CSSC Holdings.
Guangzhou Shipyard International and China Shipbuilding Trading signed the contract on 1 September for 10 vessels with capacity for 8,200 vehicles each.
The commercial package also includes options for four additional ships. The official filing covers only the 10 firm vessels and does not identify Ray Car Carriers as the customer or disclose the four options.
The buyer is controlled by Israeli businessman Abraham (Rami) Ungar. Payments for the firm ships will be made in US dollars. The contract took effect on signing and is governed by English law, with disputes subject to arbitration in London.
Earlier negotiations had covered between 10 and 14 LNG dual-fuel car carriers with capacity of about 8,600 CEU, while the final contract specifies 8,200 vehicles for each of the 10 firm ships.
China CSSC Holdings said the long construction period means the contract will not have a material impact on current-period profit, although execution is expected to contribute to future revenue and earnings. Shipping-market movements and changes in the US dollar-renminbi exchange rate were identified as risks over the contract period.
The order marks a shift in Ray Car Carriers’ newbuilding programme after more than two decades in which much of its ordering was concentrated at South Korean yards.
Ray Car Carriers is an Israeli-controlled vehicle-carrier tonnage provider owned by interests associated with Abraham (Rami) Ungar.
Guangzhou Shipyard International is a Chinese shipbuilder controlled by China CSSC Holdings and builds commercial vessels including car carriers.
China Shipbuilding Trading is a Chinese shipbuilding trading and contracting company that handles international ship export and newbuilding business.
China CSSC Holdings is the parent company controlling Guangzhou Shipyard International and other shipbuilding assets in China.