SITC International Holdings has confirmed orders for up to 12 1,800-teu feeder containerships potentially worth up to $252m.
The Hong Kong-listed intra-Asia specialist has ordered six firm vessels at Yangzijiang Shipbuilding, China’s largest privately owned shipbuilder.
The deal, which was confirmed in a regulatory filing to the Hong Kong Stock Exchange, also includes options for a further six 1,800-teu sister vessels.
The initial six ships are costing $21m each.
TradeWinds first reported that the two Chinese companies were in discussions for the sizeable newbuilding order two weeks ago.
SITC said the first six firm newbuildings would emerge from Yangzijiang’s newbuilding facilities between April and October 2022.
It said that it may exercise options for the six additional vessels in three separate tranches and for two vessels at one time.
The first tranche is exercisable within five months of the contract signing, with the remaining two tranches exercisable within five months of the previous tranche being exercised.
The last time SITC ordered at Yangzijiang was in 2017 and 2018, when it signed up for six 2,400-teu boxships at a reported price of $25m each and three 2,700-teu boxships at $29m apiece.
SITC controls a fleet of some 82 containerships and six bulkers. That includes more than 80 container vessels from 700 teu to 2,800 teu.
The feedership fleet is said to have grown by just 1% in 2019 to just over 3.5m-teu, according to Banchero Costa, with growth forecast to reach 3% in 2020 and 2% next year.
Feedership demolition activity is forecast to be strong over the next decade due to the age profile of the fleet, according to the Italian broker.
Around 20% of the feedership fleet is said to be over 20 years of age, with 18% between 15 to 19 years of age and 16% less than five-years old.
