C.Y. Tung Group Enlarges Fleet To 118 Vessels

The Hong Kong Trade Development Council reports that the C.Y. Tung Group has recentlyenlarged its fleet with the purchase of 20 secondhand vessels having a combined total tonnage amounting to over two million.

These ships were acquired last year, mostly from Scandinavian owners, and are mainly tankers of handy size, OBOs (oil-bulk-ore carriers). All 20 ships, with an average age of two to three years, have been placed on charters with international companies, including among others U.S. Steel and Pertamina.

With this new acquisition, the C.Y. Tung Group's total strength is put at 118 vessels and now becomes the second largest shipowning company in Hong Kong—trailing only Y.K. Pao's World-Wide Shipping, which owns 180 ships totaling 18 million tons.

In commenting on current market conditions in the shipping industry, Mr. Tung noted that there are signs of recovery in the tanker market as inquiries for VLCCs (very large crude carriers) and ULCCs (ultra large crude carriers) in the spot market are active. The reason for this interest is partly due to the storage program of Japan and partly because of the threat of an oil price increase. Japan's storage program revolves around the use of idle tankers as floating storage for oil, as well as other purposes. Mr.

Tung estimates that it will eventually take about 10 million tons off the market this year. On the other hand, in anticipation of a price increase, oil transport out of the Arabian Gulf has stepped up since June to more than double the amount in the same month last year.

Maritime Reporter Magazine, page 6, Oct 1978

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