News / China’s StarOcean sells box ship newbuilds as Russian players seek tonnage

02/10/2023

Chinese feeder operator StarOcean Marine, which ordered 26 newbuildings during the Covid-fuelled boom years, has sold all but five of them.

Also known as Goto Shipping, Ruiyang Shipping and Qingdao Pengteng International Ship Management, StarOcean has concluded newbuilding sales to Japanese feeder operator Imoto Lines and Russia’s Fesco, among others.

In June, Imoto purchased three 2023-built 1,096 teu vessels StarOcean had commissioned at Kyokuyo Shipyard, for $26m each.

Of the eight 2,450-2,500 teu newbuildings StarOcean had ordered at Zhoushan Changhong International Shipyard, five have been sold. Three ships were sold to Fesco while two vessels went to tonnage provider SFL Corporation, which chartered the ships to Maersk Line.

Linerlytica indicated in its 19 September report that Fesco had bought two more of the ships; one to be built in 2024.

Linerlytica noted that Russian operators continued to dominate vessel resale markets, with UAE-based Mountain Air Shipping, reportedly acquiring three 2023-built 1,800 teu ships StarOcean contracted at Yangzijiang Shipbuilding.

Not all the sales prices were released. The vessels ordered at Yangzijiang were said to have been sold for $28m each, giving StarOcean a $15m overall profit.

StarOcean, which operates from Dalian, operates a China-Japan feeder route and had ordered newbuildings for this service, but decided to engage in asset play after noting the demand from other operators and tonnage providers.

The company is thought to be controlled by Yuan Wentao, believed to be part of a family involved in freight forwarding and property leasing in China. StarOcean’s feeder operations are said to be supervised by Chen Liusong.

When dry bulk charter rates reached multi-year highs in 2021, the group ventured into the segment, purchasing 11 second-hand bulk carriers.