More container ships are being repaired and maintained as the cargo market flattens out

In the past, when freight volumes were high, line operators were reluctant to allow off-hire days to maximize their revenues.

Now that the situation has reversed, line operators are more willing to resume maintenance.

At the naming of Wan Hai 331 on March 29, maintenance work was visibly carried out on ships belonging to Taiwan’s two largest container lines, Evergreen Marine Corporation and Yang Ming Marine Transport.

Wan Hai 331 is the first of four 3,000 TEU vessels speculatively built by CSBC that were bought by local shipping company Wan Hai Lines for US$220 million. All ships are scheduled for delivery by October 2023.

A CSBC executive told Container News: “Ship repairs are definitely profitable and the margins are at least 10%. It takes at least three weeks to repair a ship, and for the past two years, when liner operators have been doing incredibly well, they have been reluctant to send their ships for repairs and maintenance unless absolutely necessary. Since the second half of last year, container freight rates have fallen and cargo volumes have decreased significantly. At that time we received more requests for repair and maintenance of container ships.”

Since August 2022, eight Evergreen ships have been entering the CSBC shipyard for repairs and maintenance. Six of the ships were built by CSBC themselves, while Yang Ming is currently repairing and maintaining ships in the shipyard. Evergreen and Yang Ming are arranging repairs and maintenance of other ships at CSBC, although some ships will go to Chinese shipyards for the same purpose.

Source: News Network