Taiwan’s TS Lines is the latest feeder liner company to invest in neo-panamax containerships by splashing $292m on four newbuildings.
Industry sources said the intra-Asian liner specialist has selected state-owned Shanghai Waigaoqiao Shipbuilding (SWS) to build the 7,000-teu ships after approaching several Far East shipyards.
News of the deal comes as Asiatic Lloyd Maritime and Singapore’s Sea Consortium this month placed orders for the vessel size.
Others, such as Mediterranean Shipping Co (MSC), and interests linked to the Germany’s Rickmers group/family and Seaspan Corp, are said to be expressing interest.
TS Lines is understood to be paying about $73m apiece for the Shanghai Merchant Ship Design & Research Institute-designed vessels. Sources told TradeWinds that the official contract signing is imminent, adding that SWS is slated to deliver them in 2024.
The sources added that the vessels will be deployed on the Indian subcontinent and Middle East trades, replacing chartered vessels that TS Lines operates.
They will be the largest containerships that TS Lines owns and operates. The 5,443-teu TS Mumbai (ex-Naxos, built 2003) is currently the biggest in its fleet.
Shipbuilding players said the vessel size is becoming increasingly popular in the Far East Asia to the Middle East Gulf, and North-South trades. They added that the orders for neo-panamaxes are expected to rise.
Early this month, Asiatic Lloyd Maritime signed up for four 7,100-teu ammonia-ready newbuildings with China’s Dalian Shipbuilding Industry Co costing a total of $280m. The deal was for two firm and two optional ships. The company — reported to have ordered on speculation — is slated to take delivery of them in 2023.
Singapore’s Sea Consortium also has four 7,000-teu newbuildings under construction at SWS for delivery before mid-2024. It was reported to have placed the order on behalf of its feeder liner subsidiary X-Press Feeders.
MSC, interests linked to Germany's Rickmers group/family and Seaspan are said to be among companies that are showing interest, with Seaspan reported to be planning an order for up to 20 ships.
TS Lines intends to relaunch an initial public offering in Hong Kong during the second half of this year. Funds raised could be used to finance the expansion of its fleet, which it has been growing through secondhand acquisitions and newbuilding orders.
According to Clarksons’ Shipping Intelligence Network, TS Lines has four 1,900-teu boxships and two 2,700-teu ships under construction at CSSC Guangzhou Huangpu Wenchong Shipbuilding. It is slated to take delivery of the bigger two ships this year and the four Bangkokmaxes next year.
TS Lines is also active in the sale-and-purchase market. The company was reported to have bought at least six vessels in the last 10 months.
Vessels acquired include the 4,957-teu TS Sydney (ex-Songa Toscana, built 2013), 5,443-teu TS Mumbai (ex-Naxos, built 2003), 1,757-teu TS Laemchabang (ex-Nordclaire, built 2016), 1,740-teu TS Haiphong (ex-Nordclaire, built 2016), 4,253-teu TS Ningbo (ex-Kota Lahir, built 2006) and 4,363-teu TS Melang (ex-Ital Melodia, built 2007).
