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The Mediterranean Shipping Co recently acquired two 14,000 TEU container ships under construction at Jiangnan Shipyard for $333 million
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Both vessels were originally ordered by China’s BAL Container Line Co. Ltd. The deal yielded a premium of $48.5 million
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The two ships under construction at Jiangnan Shipyard began construction earlier this year. They are expected to be completed next year
The Mediterranean Shipping Co. (MSC) recently acquired two 14,000 TEU container ships under construction at Jiangnan Shipyard for $333 million.
Both vessels were originally ordered by China’s BAL Container Line Co. Ltd. (BAL). The deal yielded a premium of $48.5 million.
Leoch Logistics – BAL’s parent company – stated that its wholly-owned subsidiary Lehang Boundless, Jiang Shipyard, and China Shipbuilding Trading had entered into novation agreements with Aludra Oceanway and Laudine Oceanway, both single-ship companies controlled by MSC.
The two will replace Lehang Boundless, taking over all rights, responsibilities, and obligations under the shipbuilding agreements.
The two ships under construction at Jiangnan Shipyard began building on earlier this year. They are expected to be completed and delivered next year.
Leoch Logistics announced the deal late last month, completing a payment of $84.3 million. The amount represents the first two installments paid by BAL equivalent to 30% of the ship price.
The order was placed at the height of the pandemic in 2022 via online communication with Jiangnan Shipyard, when the shipbuilding market was exceptionally hot.
In the past two years, the market has hit new peaks.
Recent reports from Xinde Marine News said the container shipping market has experienced a fresh wave of orders from the world’s top five container shipping companies based on future market expectations.
Israel and Norwegian companies posted the largest orders.
According to the publication, MSC currently has a fleet of 827 ships, with a total capacity of six million TEUs. The company accounts for 20% of the total global market share.
MSC also has 99 new ship orders, with a total capacity of 1.2 million TEU.
Despite selling the two ships orders to MSC, BAL also signed a Letter of Intent earlier this year with Jiangnan Shipyard for 2+2 more 14,000 TEU container ships, valued at $150 million.
