14.6 C
Hamburg
Friday, June 6, 2025
Home Most Popular SITC International spends over US$100 million buying ships and containers from associate

SITC International spends over US$100 million buying ships and containers from associate

SITC International Holdings, the holding company of Hong Kong-based intra-Asia carrier SITC Container Lines, said on 21 September that it will spend over US$100 million to buy five existing ships and two newbuildings from an associated company.

The associate, SITC Investment, is a British Virgin Islands-incorporated entity owned by SITC Maritime Group, a China-registered private company owned by SITC Maritime Group, which is held by SITC International chairman Yang Shaopeng.

Built between 2000 and 2008, the existing ships comprising, SITC Danang, HF Spirit, HF Fortune, HF Lucky and HF Wealth, are feeder vessels of individual capacities ranging from 1,032 TEU to 1,049 TEU. SITC International will pay SITC Investment US$39.77 million for these.

SITC International will also purchase a pair of 1,800 TEU ships, HF Changde and HF Haode, now under construction at Huanghai Shipbuilding, for US$18.44 million. The outstanding sum of US$41.94 million due to Huanghai will be paid by SITC.

In addition, a Panama-incorporated associate, Hai Lian Shipping Enterprises, 200 20-foot flat racks and 500 40-foot flat racks built in 2018.

SITC International said the purchases will increase its directly owned fleet and equipment.

The company elaborated, “The group has been chartering vessels and containers held by the target companies in order to meet its operational requirements. The acquisitions will enable the group to expand its self-owned fleet, as well as owning its own shipping containers to carry out its shipping operation, thereby reducing the number of connected transactions in its ordinary course of business. By operating its own fleet of vessels and shipping containers, the group aims to streamline its shipping operation, reduce reliance on related parties, and enhance its operational efficiency and resource utilisation.

Furthermore, vessel prices have experienced swift decline following the Covid-19 pandemic, which presents an opportunity for the group to optimise its fleet structure and secure a long-term cost-competitive position in the shipping industry.”


Martina Li
Asia Correspondent





Latest Posts

Port of Long Beach appoints new managing director of engineering services

The Port of Long Beach has appointed Suzanne Plezia, P.E., as its new Managing Director of Engineering Services, succeeding Sean Gamette, P.E., who announced...

DP World and J.P. Morgan launch partnership

DP World Trade Finance has joined forces with J.P. Morgan to enhance access to working capital across emerging markets, addressing the persistent global trade...

Red Sea shipping traffic rebounds as Houthis limit targets

Red Sea maritime traffic has increased by 60% to approximately 36–37 vessels per day since August 2024, as Reuters reported. However, it still falls short...

CMA CGM applies new surcharge from Far East to West Africa

French ocean carrier CMA CGM has announced a peak season surcharge (PSS) for shipments from Northeast Asia, Southeast Asia, China and Hong Kong &...

China to counterbalance Panama setback through South America projects

As geopolitical tensions deepen and shipping lanes become politicized battlegrounds, China is recalibrating its approach to the Western Hemisphere. The recent retreat of CK Hutchison...
error: Content is protected !!