Chinese Shipmanager Seacon Prepares to Expand Overseas
China’s Seacon Shipping has embarked on a fleet modernization program by ordering two multi-purpose vessels at a total cost of $83.1 million at Huang Hai Shipbuilding, a development that is aimed at preparing the company for global expansion.
The Qingdao-headquartered Seacon, which has historically focused on shipping and ship management services in China’s domestic market, is investing in a fleet renewal and expansion strategy soon after raising $44.3 million through listing on the Hong Kong Stock Exchange.
The move comes as the company prepares to expand its services beyond China, with intentions to launch branch operations in Greece, the Philippines and Japan. It also intends to expand ship management operations in other key cities in China like Ningbo and Fuzhou.
To support its goals, Seacon has ordered two 62,000 dwt ultramax dry bulk cargo vessels slated for delivery in November and December 2024. Each of the vessels will cost $41.5 million, with the amounts paid in instalments.
Seacon is a well-known shipping operator in the Chinese domestic market, where it owns 21 vessels. The company manages 206 vessels in total, making it the top ship management services provider in the country in terms of the number of third-party owned vessels under management. The firm boasts a combined weight carrying capacity of approximately 1.2 million dwt for its entire controlled vessel fleet.
Late last month, Seacon listed 125 million shares, raising $44.3 million to support fleet expansion, fleet renewal and new operating locations.
Seacon traces its roots back to 2012 when it launched its shipmanagement business in Hong Kong. Over the past few years it has recorded significant growth in revenues, which have nearly tripled from $135.6 million in 2019 to $372.7 million in 2021.