On February 27, LC Logistics announced that it had formally entered into a shipbuilding agreement with Shanghai Waigaoqiao Shipbuilding Co., Ltd. (“Waigaoqiao Shipbuilding”) andChina Shipbuilding Trading Co. Ltd (“CSTC”) to order two 11,000 TEU large container vessels.
The announcement disclosed that the two vessels ordered this time have the hull numbers H1664 and H1665, with a carrying capacity of 11,000 TEU.
Under the agreement, Waigaoqiao Shipbuilding will construct, launch, equip, and complete the vessels according to specifications. Upon completion and sea trials, they will be delivered to LC Logistics for a total acquisition price of US$236 million. Vessel H1664 is scheduled for delivery by November 30, 2028, while H1665 is slated for delivery by April 30, 2029.
LC Logistics stated that, given the Group’s experience operating deep-sea routes, the Board believes the acquired vessels will complement the existing fleet and enable the Group to significantly reduce its cost per TEU, offer competitive pricing to customers, and enhance sustainability in the current volatile market conditions. When demand for cross-border logistics services is high, the Group may deploy the acquired vessels on multiple major routes to provide self-operated cross-border logistics services. When market conditions are volatile, the Group may consider leasing out the acquired vessels to maintain stable profitability due to their adaptability and economies of scale.
LC Logistics was established in 2004 as a leading private cross-border maritime logistics service provider in China. It listed on the Hong Kong Stock Exchange on September 25, 2023. Its subsidiary BAL Container Line primarily engages in international container shipping, vessel operations, and container management, serving as the group’s core business segment. Currently, the company focuses on distinctive self-operated deep-sea routes to North America, South America, Europe, and Australia, supplemented by short-sea routes to Japan, South Korea, Taiwan, and Southeast Asia.