News / Russia trade newcomer swoops as TS Lines sells redundant box ships

TS Laemchabang Photo: VesselFinder

14/09/2023

Taiwanese intra-Asia carrier TS Lines has sold nine ships this year, as it continues “to right-size its fleet” after exiting long-haul lanes.

Brokers report the 2016-built 1,730 teu pair, TS Laemchabang and TS Haiphong, were the latest to leave the fleet, with handover to buyers this month and last.

TS Lines sold the ships for $23.5m each, realising a $6.6m profit on each. The Taiwanese line bought them from German tonnage provider Reederei Nord in November 2020.

In April, the carrier, which plans to list on the Hong Kong Stock Exchange, released an updated prospectus, disclosing that its 2022 net profit had dipped less than 1% year on year, to $1.07bn, as long-haul shipping rates regressed.

TS Lines responded by offloading “redundant ships” and quit the transpacific and Asia-Europe tradelanes. At the time, TS Lines had 19 ships on order, which can be used to replace older ships or upgrade services, said management. Since then, the carrier has taken delivery of six newbuildings.

Given the current bearish state of container shipping, it remains to be seen if TS Lines’ listing will happen. Two of its peers, China United Lines and LC Logistics (holding company of BAL Container Line), have allowed their IPO applications to lapse.

While VesselsValue identified the buyer of TS Laemchabang (renamed Elizabeth Fortune) and TS Haiphong (renamed Victoria Fortune) as UAE-based Teodor Shipping, Linerlytica said the real buyer was Reel Shipping, one of many opportunistic newcomers riding on high freight rates for East Asia-Russia container shipments.

The buyers of other vessels sold by TS Lines include MSC, Estonian tonnage provider Hansa Shipping and Transworld unit Shreyas Shipping and Logistics.

Meanwhile, TS Lines’ larger compatriot, Wan Hai Lines, has also been selling and scrapping older vessels. Last month, The Loadstar reported it had sold seven ships built in the early 2000s, with one buyer another Russia-focused newcomer, Global Field Line.