Pacific International Lines (PIL) has told Japanese shipowners its regular bareboat charter payments will be delayed because its main Chinese banks have been disrupted by the coronavirus.
The problem appears to be the latest indication of how Covid-19 is disrupting shipping.
According to Japanese media reports, which were corroborated by local sources, PIL has notified the owners of vessels it operates under bareboat charter deals that it has run into problems securing funds from its main Chinese banks.
The delays are associated with measures taken in China to stop the spread of the virus.
Declining revenue
But, a shortfall in PIL funding has also been caused by a slump in freight revenue due to the impact of the virus on international trade volumes.
It is understood that bareboat charter payments due to four Japanese owners in February have been delayed as a result. However, the owners have been told the liner company expects to secure normal service from its mainland China banks by 5 March.
About half of PIL’s operated fleet of 120 containerships are chartered in. Many of these vessels involve Japanese shipowners and trading houses in deals that have been funded locally in Japan.
PIL declined to comment, when approached by TradeWinds.
The Singapore-based company is a major containership operator ranking among the top ten liner companies in the world.
Fleet moves
The company has recently been paring down its fleet.
Last week PIL sold four of its modern containerships to Seaspan after announcing it was pulling out of the transpacific liner route.
PIL said it had taken the decision to quit the transpacific trade as part of a wider strategic review of its business.
Its new focus will be on strengthening its position in its niche North-South trades such as Africa, the Middle East, the Red Sea, the Indian subcontinent, Latin America and Oceania.
These trades have long been the company’s core business, where it enjoys a strong market share.
