Michio Tanamoto, executive chairman and CEO of Uni-Asia Holdings. NextInsight file photo.UNI-ASIA HOLDINGS has seized opportunities which showed up at its doorstep in recent months.
It has bought two containerships after their 8-year bare boat charters expired in April and June this year, respectively.
Uni-Asia has subsequently chartered them out for a period of less than two years.
The vessels were previously owned by the Akebono Fund which was set up in 2007. The fund is managed by Uni-Asia, which has a controlling stake of about 36.5% in it.
The two vessels are of 3,500 TEU, relatively small in the containership category. Such vessels may be used for feeder transportation between ports, for example.
Uni-Asia bought these vessels at market prices of US$18.1 million each after consulting with the other six stakeholders of the Akebono Fund.
These vessels are currently worth substantially less than when they were new and when the shipping market was far more buoyant.
The vessels are, however, expected to fetch good resale value in the next two years, the time frame for their current leases. 
Uni-Asia CFO Lim Kai Ching. NextInsight file photo."We expect the market to get better and we hope to sell these ships to realise a gain in the mid-term," said CFO Lim Kai Ching.
With oil prices down sharply since last year, these vessels are now more economical to operate. "We are seeing demand coming back for such vessels and resale values are starting to go up," said Mr Lim.
Uni-Asia executive chairman Michio Tanamoto added: "There is limited supply of containerships of this size going forward. In the past few years, many liner companies placed orders for much bigger containerships, of 20,000 TEU, for example. The economics of these big vessels were better when the oil price was high."
Reputable publication TradeWinds reported that the Howe Robinson Containership Indexhas recently climbed above 600 for the first time since Oct 2011, a rise of 25% over the past two years.
The index is projected to grow to average over 1,000 in 2017 and 1,200 in 2018, it reported.
A third containership owned by the Akebono Fund will see its 8-year lease expire too, in August this year.
But Uni-Asia has yet to finalise its decision on whether to buy the vessel or find a third-party buyer.
The Fund, which sold a dry bulk carrier last year, has two product tankers -- and a containership -- left in its portfolio. On expiry of the vessel leases, the Fund would be wound down.
Aside from the two containerships recently purchased, Uni-Asia owns (fully or majority) a fleet of nine dry bulk carriers. These have been leased out for the long term and are held for recurring charter income -- instead of short-term capital gain.
|
Korean move: In a move in June this year to enhance its business in North Asia, Uni-Asia has set up a subsidiary in South Korea.
Called Uni Ships and Management Korea, the subsidiary is run by a South Korean who will promote Uni-Asia's ship-related services such as chartering to structured finance.
In North Asia, Uni-Asia already has offices in Taiwan, Hong Kong and Japan.
