China’s BAL Container Line has added to its container ship orderbook with a resale deal at Jiangnan Shipyard.
The company, controlled by Xu Xin, has taken over contracts for two 14,000-teu vessels originally ordered by Xu’s private Lecang Fantasy.
The news was disclosed by BAL’s Hong Kong-listed parent LC Logistics, chaired by Xu.
BAL is paying an initial $57.92m to novate the contracts, equivalent to the first instalment paid by Lecang to the yard.
This is 20% of the total price, with $231.68m remaining to be paid. Each vessel is priced at $144.8m.
BAL has two feedermaxes in operation and two other 14,000-teu vessels on order at Jiangnan.
In July, the line sold two further newbuildings of the same size to giant owner MSC Mediterranean Shipping Company for $330m.
They are slated for delivery in 2025.
The latest pair will be handed over by February 2027.
In May, TradeWinds reported that BAL was considering an order for four ultra-large container ship newbuildings worth about $600m in China.
Shipbuilding sources said BAL had opted for vessels running on conventional fuel with scrubbers installed.
Good opportunity
BAL was incorporated in 2012 as a near-sea liner operator.
The group has generally used its shipping capacity in time charter services.
“Purchasing ultra-large vessels has a high entry barrier as the capable shipbuilders are limited and any order for construction will subject to the capacity of the shipbuilders,” Xu said.
“A buyer needs to have strong overall credibility and competency to operate vessels at this level of capacity. The novation represents a good opportunity for the group to further expand its fleet of vessels, achieve economies of scale and enhance its competitiveness and profitability,” Xu added.
Bosses believe the new ships will significantly reduce BAL’s costs per teu.
