Chinese intra-Asia carrier group SITC International Holdings has ordered seven more newbuildings from compatriot Yangzijiang Shipbuilding, spending a combined US$180 million.
In a filing to the Hong Kong Stock Exchange on 30 November 2020, SITC said that it had exercised options for two 1,800TEU ships, for a total price of US$42 million, after an initial order for six vessels in August. SITC still has options for four more similar vessels.
From the same shipbuilder, SITC placed additional orders, comprising one 2,700TEU and four 2,400TEU container vessels, for a total price of US$138 million.
Deliveries are scheduled from October 2021 to September 2022, with the construction undertaken by two of Yangzijiang’s subsidiary yards, Jiangsu Yangzijiang Shipbuilding and Jiangsu New Yangzi Shipbuilding.
As charter costs are rising, SITC said that it is expanding its owned fleet.
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. In August, SITC purchased the 2005-built 2,700TEU SITC Chulai (ex Bomar Aurora) for US$6 million from Borealis Finance.
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.
Martina Li
Asia Correspondent
