GE Shipping has placed an order with a South Korean ship building company for two more LR1 product tankers of 74,500 dwt each. The new vessels would be delivered in 2009.

The company said the orders placed for new vessels now stand at seven tankers and six offshore supply vessels. Of the seven tankers, two are LR1 class and the rest are MR class.

Product tankers are ships with coated tanks used to transport refined petroleum products. LR1 tankers are vessels with the maximum dimension to pass through the Panama Canal. MR tankers are medium capacity vessels of between 25,000 and 50,000 dwt.

GE has also signed an agreement to purchase a recently built Aframax class crude oil carrier, which is expected to join the company's fleet this month. Aframax tankers are too large to pass through the Panama Canal and usually have a carrying capacity of less than 120,000 dwt.

Shipping companies across the world have enjoyed a boom period over the last couple of years as freight rates have increased considerably. The increase in international trade volumes and higher crude prices have contributed to this up trend.

Higher ocean freight rates have resulted in higher prices for vessels and shipping companies have also improved their bottom line from sale of ships. Shipping companies have also placed significant orders for new vessels and most shipyards are fully booked for the next few years.

Freight rates have already come under pressure and may fall further when the new vessel deliveries start over the next year or so.

GE Shipping had reported a net profit of Rs185.21 crore, or Rs9.73 per equity share, for the December 2005 quarter as compared to Rs177.45 crore, or Rs9.32 per equity share, for the previous quarter ended September 2005. Total revenues increased to Rs708.6 crore from Rs550.64 crore.

GE demerges offshore business: GE Shipping has announced a de-merger of its offshore services business into a separate company to be called Great Offshore Limited. The offshore services division currently offers drilling services, marine logistics, marine construction and terminal services and accounts for nearly 18 per cent of the company's revenues for the year 2004-05.

Offshore services are a fast growing area with oil exploration companies increasing their activities because of higher crude oil prices. Other focused offshore service companies like Aban Lloyd, Dolphin Offshore and South East Asia Marine have seen significant order flow in the recent past.