Performance Shipping Doubles Suezmax Fleet with $163M Shipbuilding Deal
Event summary
- Performance Shipping signs contracts for two Suezmax tankers at $81.5M each, doubling its exposure to the segment.
- Vessels scheduled for delivery in October 2028 and May 2029, with 25% of global Suezmax fleet expected to be over 20 years old by then.
- Ships will be Tier III compliant and scrubber-fitted, enhancing commercial competitiveness.
- Company has previously contracted four newbuilding tankers, three of which were delivered by Shanghai Waigaoqiao Shipbuilding.
The big picture
Performance Shipping's expansion into the Suezmax segment comes as the global fleet ages, with nearly half consisting of non-eco vessels. The company is betting on favorable long-term supply dynamics and increasing ton-mile demand driven by geopolitical developments. The $163M investment reflects confidence in the segment's medium- and long-term market fundamentals, positioning the company to capitalize on evolving trade flows and energy transportation needs.
What we're watching
- Market Demand
- How consistent growth in global energy demand and geopolitical trade flow reshaping will impact Suezmax employment rates.
- Supply Dynamics
- Whether the aging global Suezmax fleet will support favorable long-term supply outlook.
- Execution Risk
- The pace at which Performance Shipping can secure attractive employment for the new vessels ahead of their deliveries.
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