Finance and InsuranceGreater China

Chinese finance floods container orderbook for foreign lines

Shanghai: Finance from Chinese institutions accounts for 61% (0.51m TEU) of capacity in the Chinese-owned containership orderbook, most of which are ultra-large container vessels (ULCVs), according to research from shipbroker Clarksons.

Currently, “financial interests” own just 3% of the existing Chinese boxship fleet.

The average capacity of vessels on order for these institutions is 11,000 teu, an increase on the average 9,000-teu capacity of a vessel in their existing fleet.

Most of these finance houses are acting as “charter owners”, who will charter out the new ULCVs on long-term contracts to foreign boxship operators such as Switzerland-based MSC and France’s CMA CGM, the broker said in a report.

“The sheer size of the two largest state owners, and their participation in key liner alliances, means that these companies will continue to play a major role in the Chinese boxship fleet,” Clarksons noted.

“However, it seems likely that they will soon be accompanied in this by a number of financial interests”, whose containership fleet will shortly begin to expand rapidly.” [30/01/15]

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