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SM Line buys more ships to expand its intra-Asia service reach

NEWCOMER intra-Asia carrier, SM Line has taken over Hanjin Shipping's transpacific and intra-Asia trade routes and has made its latest ship purchase with Baumwall GmbH & Co KG's 2000-built 1,700 TEU Bermudian Express for US$3.8 million. The ship finished its charter with X-Press Container Lines.

In April SM Line will roll out its trans-Pacific services, and does not rule out the possibility of starting an Asia-Europe service.

The purchase comes shortly after SM Line announced on March 28 that it had signed purchase contracts for three 8,600-TEU ships that were sold by Hanjin Shipping's banks for US$12.5 million each. SM Line has also acquired five 6,500-TEU ships from Hanjin Shipping, now $5 billion in debt.

Shipbroking sources told Fairplay that SM Line is in talks to acquire another three sister ships that were owned by Hanjin, whose banks have been selling the company's ships to recover as much money as possible.

The purchases are in line with SM Line's target to acquire 11 ships of 6,500 TEU and 10 vessels of 4,000 TEU. The carrier has also purchased a 1,645-TEUer, a 1,115-TEUer and the 4,523-TEU SM Mumbai.