Yang Ming confirms major feeder vessel order at CSBC

Yang Ming box ship. Credit: Dietmar Hasenpusch
Yang Ming box ship. Credit: Dietmar Hasenpusch

Taiwanese liner operator Yang Ming Marine Transport has finalised orders for up to 14 2,800 teu feeder ships at compatriot shipbuilder CSBC Corporation.

In a filing submitted by CSBC to the Taiwan Stock Exchange, Yang Ming has placed firm orders for 10 ships, with consecutive options for four more units.

Estimated delivery date for the vessels, which will be deployed to intra-Asia trades, was given as from the second quarter of 2020 to the second quarter of 2021.

Each ship is priced around USD35.7 million, meaning a total contract value of USD500 million.

IHS Markitreported on 3 July that a shortage of feeder vessels would mean higher intra-Asia freight rates, boding well for operators in this segment.

Yang Ming said that in order to comply with the International Maritime Organization’s stringent environmental regulations from 2020, the newbuildings will have energy-saving designs. The vessels will comply with the global sulphur cap and ballast water regulations.

CSBC will build the ships according to its newly developed ‘Full Spade Rudder’ design, which reduces corrosion arising from eddy currents and conserves energy.

Yang Ming’s order for new feeder ships comes after the company committed to long-term charters of five 11,000 teu ships and five 12,000 teu vessels from Shoei Kisen Kaisha and Costamare on 4 July.