Malaysia's Lianson Fleet Group (LFG) is moving into larger bulk carriers with the acquisition of two 2017-built ultramaxes for a combined $52.32 million, according to a report from Splash247. The deal signals the Bursa Malaysia-listed company's continued shift from its traditional offshore support vessel (OSV) base toward a more diversified maritime portfolio.
Deal Details
LFG's wholly owned subsidiary signed two separate agreements with unrelated Chinese sellers for the vessels Tian Mu Shan and Yan Dang Shan, Splash247 reported. Both are 2017-built ultramax bulkers, representing LFG's first ships in that size category. The acquisitions are expected to be funded through internal funds and bank borrowings, with delivery anticipated later this year. The purchase follows LFG's recently announced supramax acquisition, which is scheduled to deliver in August.
Fleet Composition
Once all three vessels (two ultramaxes and one supramax) are added, LFG's fleet will stand at 41 units, Splash247 stated. The group's fleet composition will then be:
| Vessel Type | Count |
|---|---|
| Barges | 17 |
| Tugboats | 17 |
| Bulk carriers | 7 |
| Total | 41 |
The bulk carrier segment will now include the two ultramaxes and one supramax, moving the group beyond its existing supramax exposure. Prior to these deals, LFG's bulk carrier fleet comprised only supramax vessels, according to the report.
Strategic Rationale
LFG said the ultramax purchases are part of its plan to expand its shipping business and add long-term charter asset classes with better earnings visibility, Splash247 reported. Managing director Lim Chern Wooi explained that the group had been reshaping itself into a more diversified maritime company over the past few years, moving beyond its core OSV operations.
"The expansion of our bulk carrier fleet is a continuation of this strategy, allowing us to participate in global dry bulk shipping markets that are supported by different demand cycles from our core offshore businesses," Lim said.
LFG, formerly known as Icon Offshore, is a Malaysia-based maritime company listed on Bursa Malaysia. The acquisitions reinforce its pivot toward dry bulk shipping, a sector that offers exposure to commodity flows distinct from the oil-and-gas-driven OSV market.
Implications for the Dry Bulk Market
For freight forwarders and logistics operators, LFG's expansion into ultramaxes adds capacity to the dry bulk fleet, particularly in the 64,000-deadweight-tonne segment. While no specific rate or route impacts were detailed in the source, the addition of two modern ultramaxes increases available tonnage in a market where ultramaxes are widely used for grain, ore, and coal shipments. Shippers and charterers may benefit from greater supply flexibility on key dry bulk routes, though any effect on spot rates will depend on broader market conditions. LFG's move also underscores a trend among offshore service companies branching into bulk shipping to smooth revenue cycles.
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