Indonesia’s Samudera Shipping is holding fire on new vessel orders for now while yard prices remain elevated.
But the Singapore-listed company has explained how it is building up its container ship fleet through charters with purchase options attached.
In a filing to the SGX bourse, the owner said its fleet now stands at 32 vessels comprising 29 container ships, two chemical tankers and a gas carrier.
Six are owned, while the rest are leased.
Since 2020, the group has been “systematically” disposing of all its older and less-efficient vessels in favour of newer, larger and more-efficient ones as part of a fleet-renewal programme, and to meet growing demand for its services, Samudera said.
In view of the surge in vessel prices over the past two years, the group has been securing replacement tonnage on charter and long-term leases as it bides its time for opportunities to acquire newbuildings at competitive levels.
“This is part of the group’s strategy to manage its costs even as it is rejuvenating its fleet,” the company added.
Some of the long-term leases for new vessels to be delivered from the fourth quarter of 2022 include options to buy.
Collectively, these replacement vessels currently make up about 90% of the group’s existing container fleet.
Charters of up to nine years
Most of Samudera’s container capacity is utilised on a contract basis, with only a very small proportion working the spot market.
“This arrangement has been in place for many years now. The duration of a typical customer contract ranges from six to 12 months and is subject to renewal upon expiry,” the shipowner said.
Long-term time charters range from seven to nine years.
The relatively longer charter-in periods are aimed at minimising service disruptions due to limited vessel supply, the owner explained.
Last summer, Samudera confirmed the sale of the 1,118-teu Sinar Bima (built 2008) for $12.5m, while the 1,740-teu Sinar Sabang and Sinar Sumba (both built 2008) were sold in April 2021 for a reported figure of $13.2m combined.
Before this, Samudera had added seven ships to its fleet and is committed to two 1,900-teu container ships under long-term charters that will be delivered this year and in 2023.
