Germany’s Vega Reederei has returned to the newbuilding market to order a series of feeder boxships after rekindling its relationship with a Chinese shipyard.
The Hamburg-based owner has placed orders for four 1,868-teu containerships with Zhejiang-based Yangfan Group, the yard where it bought a series of boxships prior to the financial crisis.
Trust in the yard and early delivery dates in the final quarter of next year were key to the decision to press ahead with the order, Vega managing partner Arene Brugge said.
Designed by the Shanghai Merchant Ship Design and Research Institute (SDARI), the gearless vessels are standard Bangkokmax dimensions at 172 metres long with a 27.5-metre beam.
Two of the ships are slated for delivery in October and November 2022, with two in December next year.
Known as SDARI Sealion designs, they are said to have low fuel consumption.
Both the shipowner and the yard declined to comment on the price, although similar ships ordered in China this year are reported to be costing about $23m per vessel.
'Realistic people'
The vessels have been ordered without charters.
So the early delivery date is a major attraction as it should enable the owner to take advantage of the soaring containership market.
The market for modern standard Bangkokmax designs is booming with vessels being fixed on periods for $24,000 per day.
Recent fixtures have seen vessels taken for even higher rates.
The 1,756-teu Nordpuma (built 2015) is said to have been fixed with France's CMA CGM for two years at a rate of close to $26,000 per day.
Brugge said the ships have been ordered in expectation that today’s high charter rates will not necessarily last for the lifetime of the vessel.
“We are realistic people,” Brugge said. “There have not been so many small ships ordered.”
The executive added that there will still be a market for smaller ships.
“We were simply able to catch these slots,” he said.
The companies inked the order via a virtual signing ceremony in Hamburg and China on Monday.
Brokers for the deal were Christian Gast and Hans-Joachim Lemcke of Hamburg-based shipbroker Peter Gast Shipping.
Reversal of fortunes
The newbuilding order marks a remarkable reversal of fortunes for Vega.
It last ordered a series of vessels in China in 2007, including several 957-teu containerships at Yangfan. Many of those ships were hit by low earnings.
July 2020, Vega placed the 957-teu sisterships Vega Hercules (built 2006), Vega Omikron (built 2005) and Vega Scorpio (2010) into lay-up in Scapa Flow, in Scotland's Orkney Islands.
This enabled Vega to retain control of vessels and the value of the ships has risen in the current market from $2m to $10m, shipping sources said.
“The lay-up saved these vessel for us,” Brugge confirmed.
Vega, founded in 1919 in Hamburg, controls a handysize bulker, two product tankers and 17 feeder containerships.
The company is the second German boxship tonnage provider to have entered the newbuilding market this year for small feederships.
Last month, Leer-based Briese Schiffahrt ordered four 1,930-teu boxships at China's Guangzhou Wenchong Shipyard.
