LDA is pursuing a "counter-cyclical" strategy to expand its fleet during a current downturn in freight, with the expectation the market will have recovered when the new ships are delivered, Philippe Louis-Dreyfus, the group's president, told reporters.
LDA signed an order for eight bulk carriers from state-owned China Shipbuilding Industry Co. (CISC) in a $330 million deal first announced in January.
"We consider that it was the right time to go into the market," Louis-Dreyfus said following the signing ceremony. "It's not impossible that we will order more ships."
LDA previously sold a significant part of its bulk-carrier fleet at the peak of the market in 2007 and 2008 and is now taking advantage of cheaper prices in a freight market weighed down by overcapacity in ships, the company said.
The firm expects the freight market to see an upswing from 2013, coinciding with the start of the delivery period for its eight new bulk carriers, scheduled for 2013-14.
The dry bulk market continues to struggle with rising fleet growth, ordered before economic turmoil in 2008.
The closely held group, which used to be part of commodities trading giant Louis Dreyfus, could acquire vessels from ship operators and builders struggling in the current downturn, Louis-Dreyfus said.
Energy-Efficent Designs
LDA was also in talks to provide a listed industrial company with its vessels, he said, declining to give more details.
In the deal with China's CSIC, LDA is to acquire four capesize ships, which are 292 metres long and able to carry 180,000 tonnes, and four handymax ships, which will be 180 metres long and carry 40,000 tonnes. The ships are to be built by CSIC shipyard Tianjin Xingang Shipbuilding Heavy Industry.
CSIC was created out of the former China State Shipbuilding Corporation in 1999 and is one of China's largest shipbuilding and repair companies, with 140,000 staff.
The ships ordered by LDA will boast new energy-efficiency designs, with larger capesizes consuming 7-8 tonnes of fuel less per day than current models and the handymaxes using 4-5 tonnes a day less, the French company said.
The handymax ships would also be able to dock at ports with a water depth of 10.5 metres, versus the 11 metres currently needed, giving them access to more ports without towing.
In addition to bulk shipping, LDA has developed specialist partnerships, including laying subsea cables for Alcatel-Lucent , offshore seismic research with CGGVeritas and carrying plane parts for Airbus .
A ship belonging to LDA and Alcatel-Lucent's Alda Marine joint venture has been chartered to take part in an ongoing search for flight recorders and debris from a jet that crashed in the sea in 2009 during a Rio de Janeiro-Paris flight, the shipping company said.
The specialist activities are partly a way for LDA to offset market swings in its traditional bulk business, it said.
LDA is considering resuming port calls in northern Japan, after restricting its vessels to the south following the earthquake, tsunami and nuclear crisis, Louis-Dreyfus added. (Reuters)
