Mint reported that Shipping Corp of India Ltd has hired 2 medium sized container ships for 2 years, taking advantage of rock bottom ship rentals.
As per report, SCI hired one ship at a day rate of USD 5,700 and the other at USD 6,150. The first vessel has a capacity to carry up to 3,534 standard containers and the second up to 3,300 containers. SCI has the option of extending the hiring period by a year at a higher rate.
The two ships hired by SCI in early May will be used to carry containers between India and Europe, a service the firm was running along with 4 partners till April. Zim Integrated Shipping Services (I) Pvt Ltd, MISC Bhd, K-Line and Yang Ming Marine Transport Corp. have since withdrawn from the India-subcontinent-Europe service on falling demand and lower freight.
As per report, SCI is now running the fixed day, weekly direct service in partnership with Mediterranean Shipping Co. SA, the world’s second biggest container shipping firm. The ISE service links Jawaharlal Nehru Port, India’s busiest container port, and the nearby Mundra port in Gujarat with European ports such as Barcelona, Hamburg and Rotterdam.
Nr JN Das director of SCI said that “It is part of a long term strategy. Just because the market is down, it does not mean that we should stop operating container ships altogether.”
Mr Das on the decision to hire two ships amid falling demand and freight rates said that “We are not looking to make profits. We are trying to cut down losses.”
SCI runs a fleet of nine container ships, some of which it owns.
As per report, SCI hired one ship at a day rate of USD 5,700 and the other at USD 6,150. The first vessel has a capacity to carry up to 3,534 standard containers and the second up to 3,300 containers. SCI has the option of extending the hiring period by a year at a higher rate.
The two ships hired by SCI in early May will be used to carry containers between India and Europe, a service the firm was running along with 4 partners till April. Zim Integrated Shipping Services (I) Pvt Ltd, MISC Bhd, K-Line and Yang Ming Marine Transport Corp. have since withdrawn from the India-subcontinent-Europe service on falling demand and lower freight.
As per report, SCI is now running the fixed day, weekly direct service in partnership with Mediterranean Shipping Co. SA, the world’s second biggest container shipping firm. The ISE service links Jawaharlal Nehru Port, India’s busiest container port, and the nearby Mundra port in Gujarat with European ports such as Barcelona, Hamburg and Rotterdam.
Nr JN Das director of SCI said that “It is part of a long term strategy. Just because the market is down, it does not mean that we should stop operating container ships altogether.”
Mr Das on the decision to hire two ships amid falling demand and freight rates said that “We are not looking to make profits. We are trying to cut down losses.”
SCI runs a fleet of nine container ships, some of which it owns.