Shipping line SITC sells urban transportation to focus on shipping containers

09/05/2022

Recently, China's leading shipping line SITC said it would sell all five bulk carriers to focus resources on developing its core business of container shipping.

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SITC (SITC Container Lines) is China's leading shipping line, specializing in providing container shipping services. The company's head office is SITC International Holdings located in Shanghai. As of May 2021, it has accounted for 0.6% of the shipping market share and is the 15th largest ship operator in the world with a capacity of about 148,000 TEUs.

Containers of SITC at the port (Photo source: SITC Vietnam)

Image of SITC's shipping vessel (Photo source: SITC Vietnam)

Regarding the reason that the company decided to abandon the bulk shipping segment even though the company is still earning high profits, a representative from the company said: "While the rental price of bulk carriers has been stable, revenue Revenue from chartering accounts for only a small portion of the group's revenue and management wants to focus on its core business, which is container shipping.” As a result, SITC decided to sell its remaining five cargo ships.

Previously, the company also sold two other bulk carriers, SITC Huangshan in November 2021 and SITC Taishan in February 2022 for $22 and $18.25 million, respectively.

With the goal of focusing on developing the container shipping business, SITC has imported 33 container ships from Korea with a capacity from 1,800 TEU to 2,700 TEU. These new-built ships are expected to be shipped and handed over to the company from the middle of this year to the end of 2024. With such a large number of new container ships, the company will gradually phase out the old ships, reducing the quantity. outsourced ships.