Wan Hai Lines, the Taiwan-listed box carrier focused on intra-Asia trades, has announced it will not exercise options to build four extra feeder vessels at Huangpu Wenchong Shipbuilding.
Last November, Wan Hai signed a deal to construct 12 firm 2,038-teu ships and four optional ones at Huangpu Wenchong — part of China State Shipbuilding Corp — for $26.3m apiece.
However, the company said in an exchange filing on Monday that the option would not be picked up. It did not elaborate on the decision.
Wan Hai has also booked eight 3,036-teu containerships at Japan Marine United for $41.4m each, with an option for another four.
The company has until 12 May to decide on whether the option would be exercised.
The 2,038-teu and 3,036-teu vessels, which Wan Hai said would help its fleet renewal efforts, are due for delivery from October 2020.
While enjoying firm supply-demand balances, the container shipping industry is facing heightened risks from the potential escalation of the US-China trade war.
As more US-China trade could face additional tariffs after March, Clarksons has estimated the trade tension could reduce global box volume by as much as 1.4% this year.
