South Korea amends Shipping Act, but too late to avert heavy fines on carriers
South Korea has amended its Shipping Act to protect its shipping industry from falling foul ...
With its profits having tripled, SITC International said it would continue to acquire second-hand ships and order newbuildings “at reasonable prices”.
The Hong Kong-listed parent of SITC Container Lines unveiled its H1 21 results on Monday, which revealed a net profit of $63m.
SITC also said 90% of its capital expenditure, some $83.6m, had gone toward vessel acquisitions in the first half.
Vessel databases show SITC acquired the 2007-built 1,032 teu SITC Rizhao (ex-Sinar Bitung) from Japanese owner Soki Kisen in April for an undisclosed price.
Chairman Yang Shaopeng said: “SITC will continue to purchase container vessels and containers and invest in logistics projects as and when appropriate. The company expects the internal financial resources and bank borrowings will be sufficient to meet the necessary funding requirements.”
During the first six months, SITC also ordered a dozen 1,023 teu ships from Dae Sun Shipbuilding in Korea and eight vessels from Yangzijiang Shipbuilding in China – four each of of 2,600 teu and 1,800 teu.
At 30 June, SITC had 37 containerships scheduled for delivery in the coming year. It is the 15th-largest liner operator, with total capacity of 140,336 teu, and 75 owned ships.
SITC’s revenue from container shipping and logistics increased by approximately 80% in H1 21, to $1.32bn, from $732m in H1 20, as cargo volumes and freight rates continued to rise. It carried 1.49m teu, up from 1.15m teu in H1 20.