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Home News Major SITC feeder ship order buoys Yangzijiang

Major SITC feeder ship order buoys Yangzijiang

Intra-Asia carrier group SITC International Holdings has placed firm orders for six 1,800TEU feeder vessels from two subsidiary yards of China’s Yangzijiang Shipbuilding. The contract carries options for six more ships.

The company announced on 31 August that its subsidiary, SITC Shipowning had posted the US$126 million six-ship order.

Construction of the newbuildings will be split between Jiangsu New Yangzi Shipbuilding and Jiangsu Yangzijiang Shipbuilding.

SITC is the second customer to order feeder ships from Yangzijiang this year, after Zhejiang Seaport Shipping ordered four 1,000TEU vessels from the shipbuilder in May.

SITC said that the newbuildings, which will be delivered between April and October 2022, will expand its owned fleet to meet the healthy demand for intra-Asia transportation.

The company recently announced a net profit of US$119.64 million for the first half of 2020, as reduced bunker costs mitigated a drop in cargo volumes and freight revenue.

SITC has also been growing its fleet with second-hand ship purchases, as the company opens more intra-Asia routes to cater to healthy demand.

Notwithstanding the market uncertainties caused by the Covid-19 pandemic, SITC believes that the intra-Asia trade market will continue to experience significant growth.

As of 30 June, the group operated in 70 trade lanes, including nine through joint services and 27 trade lanes through container slot exchange arrangements. These services and land-based integrated logistics business network covered 72 major ports in Asia.

Alphaliner now ranks SITC 17th among the world’s liner operators, with 69 owned ships of 100,219TEU and 19 chartered vessels of 29,412TEU.

Martina Li
Asia Correspondent

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