Yangzijiang gets new orders for nine vessels worth US$226 million

YANGZIJIANG Shipbuilding on Monday said it has signed agreements to build and deliver nine vessels worth about US$226 million.

The nine vessels consist of four 2,400 twenty-foot equivalent unit (TEU) containerships, one 2,700 TEU containership, two 1,800 TEU containerships and two 59,000 deadweight tonnage (DWT) dry bulkers.

The two 1,800 TEU containerships were exercised as part of the option orders placed by SITC International Holdings in August. The two 59,000 DWT dry bulkers were placed by Shanghai Baosteel Shipping.

The 2,700 TEU containership will be delivered in late 2021, and the rest of the vessels will be delivered in 2022.

The new orders bring Yangzijiang's total order wins year to date to US$1.26 billion for 43 vessels, not considering the value of the option orders.

Ren Letian, executive chairman and CEO of the group, said the company has noticed an increase in the demand for smaller containerships. This comes as the shipping industry adapts to emerging trends and strives to meet the heightened demand for intra-regional shipping and more flexible services.

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Mr Ren added that the recent Regional Comprehensive Economic Partnership (RCEP) is expected to stimulate the seaborne trade between member countries in the Asia-Pacific region. "With these favourable market forces, we hope to deliver further good news to the market when our ongoing negotiations on potential orders bear fruit," he said.

Shares in Yangzijiang ended trading at S$0.88 on Monday, down S$0.04 or 4.35 per cent.