Mainboard-listed Yangzijiang Shipbuilding has entered into an agreement with a few customers for the building and delivery of nine vessels worth a total of US$226 million ($302.3 million).
This brings the group’s total value of new orders to US$1.26 billion year-to-date in 2020.
The nine vessels comprise four 2,400TEU containerships, one 2,700TEU containership, two 1,800TEU containerships and two 59,000DWT dry bulkers.
Of the orders, two 1,800TEU containerships were exercised as part of the option orders placed by SITC International Holdings in August 2020.
The 59,000DWT dry bulkers were placed by Shanghai Baosteel Shipping.
The 2,700TEU containership will be delivered in late 2021 and the rest, in 2022.
See:Encouraging outlook for Yangzijiang Shipbuilding ocean freight spot rates continue uptrend
“Shipowners have adopted a long-term view and planned their fleets accordingly, although the near-term visibility is low as Covid-19 sweeps the world. We appreciate our customers’ trust in Yangzijiang which led to these new orders,” says the group’s CEO and executive chairman Ren Letian.
“We continue to notice an increase in the demand for smaller containerships, as the shipping industry adapts to emerging trends and seeks to meet the heightened demand for intra-regional shipping and more flexible services,” he adds.
Commenting on the recent establishment of the Regional Comprehensive Economic Partnership (RCEP), Ren says the partnership “is expected to stimulate the seaborne trade between member countries in the Asia-Pacific region by measures such as facilitating easier cross-border logistics and lowering tariffs.”
“The RCEP highlighted the significance of trading in the economic recovery amid and post COVID-19, and it will require both the shipping and shipbuilding industries to be prepared for the evolving demand for more efficient and cleaner vessels. With these favourable market forces, we hope to deliver further good news to the market when our ongoing negotiations on potential orders bear fruits,” he notes.
Shares in Yangzijiang closed 4 cents lower or 4.3% down at 88 cents on Nov 30.
