Wan Hai Lines will not exercise options for four feeder container ships.
It made the announcement that it would not proceed with the options for four 2,038-TEU vessels at Guangzhou Wenchong Shipyard in China, in a stock exchange filing.
It gave no reason for deciding not to fulfil the options.
Wan Hai Lines had confirmed an order of 20 container vessels with Japan Marine United Corporation (JMU) and Guangzhou Wenchong Shipyard Co/China Shipbuilding Trading Company (GWS/CSTC) in November 2018 as part of its fleet improvement plan.
The contract includes eight 3,036-TEU container vessels with JMU and 12 2,038-TEU container vessels with GWS/CSTC, to be delivered between 2020 and 2021. The contract included the options for four 2,038-TEU vessels which have been cancelled. It also includes an option to declare an additional four 3,036-TEU vessels within six months.
Wan Hai Lines operates a fleet of 72 owned vessels and 24 chartered vessels. It commented in a statement “This new shipbuilding contract is the company’s latest fleet renewal plan, so as to ensure that the company’s vessel fleet is able to remain competitive and support continuous market development. Eventually, the company hopes to deliver better service quality to its customers with a more efficient vessel fleet.”