Ernst Russ AG is moving into the tanker market with an agreement to acquire four intermediate-class chemical and product tanker newbuildings, as the Hamburg-based owner broadens its fleet beyond its existing core segments.

Each vessel will have a deadweight tonnage of 18,500 tonnes and all four have already been fixed on charters running for a minimum of five years from delivery. Ernst Russ said the deal will add roughly $126 million to the group’s contracted revenue backlog.

The ships are under construction at Wuhu Shipyard in China and, according to the company, have been specified to target the higher end of the market.

Their design includes 12 cargo tanks fitted with MarineLINE coating, allowing them to carry a wide mix of cargoes such as vegetable oils, petroleum products and chemicals. The vessels are also being built with methanol-ready notation, while Ice Class 1B and Great Lakes capability are intended to open access to specialist trades with stronger earnings potential.

Ernst Russ said the combination of cargo flexibility and technical specification should help support strong utilisation and make the wider fleet more resilient to swings in individual shipping segments.

The first pair is expected to join the fleet between Q4 2026 and Q1 2027, with the remaining two scheduled for delivery between Q1 and Q2 2027. The associated charter arrangements also contain extension options, and the company expects them to underpin earnings visibility for the first five to eight years of operation.

The investment will be financed on what Ernst Russ described as a conservative basis, with the aim of preserving balance-sheet strength while still generating attractive returns on equity.

Joseph Schuchmann, Co-CEO and Chief Commercial Officer of Ernst Russ AG, commented: "The segment we are investing in offers structural attractiveness: supply is limited, demand for modern tonnage is growing, and access to niche markets with restrictive approval requirements gives us a genuine competitive advantage – the foundation for attractive long-term returns."

Ernst Russ said the acquisition is part of its wider strategy to spread exposure across several shipping sectors, while also renewing the fleet with vessels that meet higher environmental and technical standards.

The listed German owner currently has 27 vessels in its fleet, with two more on order. Its existing portfolio is centred on container ships from 700 to 4,200 teu, alongside one 13,400-teu boxship, three multipurpose vessels and one handysize bulker.