SITC seeks to gain edge amidst feeder shortage

Hong Kong-headquartered intra-Asia specialist SITC has made another foray into the newbuildings market with a brace of 2,400 teu containerships from China’s Yangzijiang Shipbuilding.

SITC will pay a total US$58m for the two vessels, which are scheduled for delivery in September and November 2020. The order for the ships has a requirement for a minimum container intake of around 34,800 tons.

The latest order follows a previous order for two similar vessels last year, and the taking up of options on a further two ships at Yanzijiang. The vessels ordered in 2017 came with a price tag of US$25m each.

The US$4m premium to be paid on the latest pair reflects the perception that the numbers of smaller vessels currently on the water have failed to keep up with the surge in mega containerships.

In August 2017 SITC paid US$68m for four 1,011 teu containerships with Korea’s Dae Sun Shipbuilding & Engineering.

In a statement to the Hong Kong stock exchange SITC said the newbuildings would enable the company to expand its self-owned fleet of container vessels to meet the increase in demand for the company’s services.

As of 31 December 2017, SITC operates 77 containerships and six dry bulk vessels, including 48 owned ships. The existing 63 services routes cover 12 countries and regions, 64 major ports in Mainland China, Japan, Korea ,Taiwan China, Hong Kong China, Vietnam, Thailand, Philippines, Cambodia , Indonesia, Brunei and Malaysia.

According to Alphaliner statistics, counted by capacity, SITC ranks No. 20 in the global container shipping enterprises as of Dec 31, 2017. The container transportation volume in 2017 exceeded 2.385m teu.

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