SITC Keelung (002)

Liner operators and non-operating shipowners have continued to add to their already swollen orderbooks, despite rapidly falling spot freight rate levels.

Hong Kong-based intra-Asia carrier SITC Container Lines today exercised options for two more 1,800 teu ships at China’s Huanghai Shipbuilding, adding to the six contracted last year, each costing around $29m.

The vessels previously ordered are expected to be delivered between 2026 and August 2027 and the additional ships are estimated to hit the water at the end of 2027.

SITC now has 102-owned box ships in service, with a combined capacity of 166,949 teu, and has 14 on charter, bringing 14,862 teu. It is the 14th largest operator. The additional ships were confirmed a week after SITC International reported estimated 2024 net profits of around $1bn, up 86% from 2023.

MB Shipbrokers has reported that demand for feeder and smaller box ships generally remains high.

On a larger scale, yesterday French carrier CMA CGM ordered 12 LNG dual-fuelled 18,000 teu ships from HD Hyundai Heavy Industries for $2.6bn, bringing its orderbook to more than 1.3m teu and potentially thinning the gap between it and Maersk Line in the liner rankings.

And Greek shipping magnate George Economou, who last year ordered four 7,900 teu ships from South Korea’s HJ Shipbuilding & Construction, is now reportedly in negotiations for ten 11,000 teu ships with China’s Zhoushan Changhong International Shipyard.

This represents a return to the container industry for his company, TMS Dry, which sold its last box ship in 2020 and was said to have agreed to charter the 7,900 teu vessels to Zim after delivery in 2026 and 2027.

Alphaliner estimates that 11,000 teu newbuildings are priced at around $120m for a conventionally fuelled ship and $138m if it is LNG dual-fuelled.

Listen to this clip about the orderbook, and planning for the Suez reopening

Henrik Schilling, managing director, global commercial development at Hapag-Lloyd

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