Thai intra-Asian specialist Regional Container Lines (RCL) is reletting two 11,800-teu newbuild boxships to Israeli operator Zim.
The deal is the second between rival liner operators to emerge recently.
It comes as the Bangkok-listed operator is celebrating a record profit quarter and a $20m investment in another two secondhand feeder vessels.
RCL surprised the market in August by purchasing a pair of modern neo-panamax newbuildings with nominal capacity close to 12,000 teu.
It was deemed an extraordinary move by RCL that operates a fleet of 42 smaller containerships on intra-Asian trades.
Change of heart
RCL initially said the vessels would be used for its own services on delivery late next year and early 2023. But the carrier appears to have been tempted by a lucrative relet opportunity.
RCL is paying a total of $230m for the newbuildings that it will purchase from Japan's Shoei Kisen Kaisha.
On Monday, the company said it had made an initial payment of THB 940m ($29m) for two subsidiaries formed to own and manage the vessels. It was needed to comply with a loan precondition from the Export-Import Bank of Thailand.
The payment came after RCL fixed the vessels to Zim for five years at a rate of $65,000 per day, according to charter market sources.
The fixture points to a cooling of charter rates for large boxships in recent weeks.
In August, the 9,443-teu Seamax Rowayton (built 2015) and Seamax Mystic (built 2016) were fixed for similar periods and rates with French operator CMA CGM. But RCL's vessels are larger and delivery from Japan's Imabari Shipbuilding is not scheduled for another year.
The RCL pair are identical to 23 other vessels controlled by Shoei Kisen and chartered to Taiwanese operators Evergreen and Yang Ming Marine Transport on long-term contracts.
The 12th in the series — the 11,860-teu YM Trust (built 2021) — is scheduled to be delivered to Yang Ming from Imabari's Hiroshima Shipyard on 10 November.
The RCL fixture is the second major charter between liner operators to have emerged in recent weeks.
Last month, Taiwan's Yang Ming sub-chartered a neo-panamax containership to AP Moller-Maersk.
That relet involving the 10,114-teu Express Berlin (built 2011) raised eyebrows since such deals between rival alliance members are rare.
Purchase tally rises to six
RCL is continuing its secondhand spree, purchasing its fifth and sixth boxships this year.
It is buying two unnamed sub-panamax vessels of 1,858 teu each costing $6.7m and $13.6m, according to a stock exchange statement.
These are in addition to four boxships already purchased this year, including two larger vessels of 6,000 teu each that will be used to expand its regional services.
RCL paid $33m in the first quarter of the year to acquire the 5,888-teu Aka Bhum (ex-OOCL Antwerp, built 2006) and a further $31.2m to purchase the 6,350-teu Bhudthi Bhum (ex-APL Norway, built 2007).
The company also paid $16.1m to take the 2,826-teu Ganta Bhum (ex-Irenes Reliance, built 2005), and it bought the 1,094-teu Ratana Thida (built 1996) for a scrap-level price of $2.45m.
The largest vessel in the RCL fleet is the 8,214-teu Charleston (built 2005), which is chartered from Greek operator Danaos until next month.
'Phenomenal profit'
RCL continues to reap "phenomenal profit", according to managing director Sumate Tanthuwanit.
The company reported net profit of THB 3.73bn ($113m) in the third quarter, compared with THB 257m in the same period last year.
For the first nine months of 2021, RCL made a net profit of THB 9.8bn, up from TBH 485m in the same period last year.
RCL is optimistic of carrying more volumes in the fourth quarter.
This month, the company will launch a new service between China and the Middle East to be operated with its partners — Singapore-based Pacific International Lines, South Korea's KMTC and China's CU Lines.
The new service will use five 2,800-teu vessels, with the first sailing to take place from Ningbo on 22 November.
RCL will place the 2,826-teu Ganta Bhum (bult 2005) on the service.
According to a RCL spokesperson, the service has been kept to five ports of calls "to reduce the probability of delays, which has become a significant issue of concern in today’s container market".
RCL and Zim were contacted for this story.
