Taiwan’s TS Lines has returned to China's state-owned CSSC Huangpu Wenchong Shipbuilding for more containership newbuildings.

The liner company has ordered up to four 1,900-teu feederships. The deal is for two firm vessels plus two options, according to market sources.

A TS Lines executive confirmed the containership order but declined to disclose details.

The TS Lines newbuildings will be fitted with scrubbers and the company is paying about $23m per ship, industry sources told TradeWinds.

This is the second time TS Lines has gone to Wenchong to build containerships.

Last year it ordered two scrubber-fitted 2,700-teu newbuildings for mid-2021 delivery at a reported price of $30m apiece. The order included two options, which were not exercised.

TS Lines will be deploying the 2,700-teu ships on the Vietnam trade.

Rise in profit

Its profits for the first quarter increased by 170% to TWD 650m ($22.19m) despite challenging conditions caused by coronavirus.

The company withdrew from the US trade loops and concentrated on the intra-Asia and Asia-Australia routes.

It reduced costs by redelivering chartered vessels that were deployed on withdrawn services and controlling costs on routes with growing demand.

TS Lines' chairman TS Chen said “there is a silver lining in the pandemic, as oil prices collapsed to an 18-year low, resulting in low-sulphur fuel oil becoming cheaper".

"This meant compliance with the International Maritime Organization’s emissions cap was more affordable," he said.

Chen added that TS Lines company will continue to grow its fleet through the acquisition of secondhand vessels and newbuildings.

“Today’s newbuildings are fuel efficient, but it takes two years for a vessel to be built. If there are suitable pre-owned ships in the market, we will consider secondhand purchases," Chen said.

TS Lines, which was established by Chen in 2001, began with a chartered small feeder vessel of 300-teu in addition to slot-charter agreements with other liner companies. Today, it operates 47 ships, including 13 owned vessels.