MSC Acquires BAL Container Line’s 14,000 TEU Vessels

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Mediterranean Shipping Company (MSC) has acquired two 14,000 TEU vessels from BAL Container Line, a strategic move that bolsters MSC’s dominant market position. These vessels, currently under construction at Jiangnan Shipyard, are part of BAL’s previous venture into long-haul shipping during the pandemic boom.

MSC’s Strategic Acquisition

MSC will take ownership of the two vessels through its special purpose vehicles, Laudine Oceanway and Aludra Oceanway. BAL initially invested $84.3 million in the vessels and will now realize a $49 million profit from MSC’s purchase price of $133.3 million, plus an additional $3.3 million for onboard equipment.

Financial Details and Supervision

MSC will cover the remaining $196.7 million construction cost owed to Jiangnan Shipyard. Despite the sale, BAL will oversee the completion of the vessel construction, leveraging its familiarity with the project to ensure smooth progress until delivery between July and September next year.

BAL’s Continued Expansion Plans

Although BAL has sold these vessels, it remains committed to expanding its fleet. The company has reportedly signed a letter of intent for four more 14,000 TEU ships with Jiangnan Shipyard, indicating its ongoing interest in long-haul trades, especially with its revived China-Mexico service.

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Source: THE LOADSTAR