Hong Kong Shipping Line Kawa Shipping Invests $240 Million in New Vessels

Hong Kong-headquartered container shipping line Kawa Shipping has reportedly booked three 4,800 TEU vessels to be built at China’s Wuhu Shipyard, part of China State Shipbuilding Corporation (CSSC), in a $240 million deal.

It is understood that the contract also includes an option for a fourth newbuilding. The delivery date for the ships has not been disclosed.

Kawa Shipping, established in 2023, is making significant strides in the maritime industry with this new order being one of the company’s first newbuildings. Currently, the company has a fleet of nine units with a combined capacity of 15,218 TEUs, as per data from Alphaliner.

Industry Trends and Developments

The latest order from Kawa Shipping reflects the growing trend in the shipping industry of increased container vessel bookings in 2024. The global boxship orderbook reached 8.3 million TEUs by the end of the year, a notable increase from the 7.8 million TEUs reported in early 2023.

Furthermore, the launch of the China-Europe Express service (CEX) between Ningbo in China and Germany’s Wilhelmshaven ports signifies a strategic move to establish a fast maritime connection between Asia and Northern Europe. This direct route is designed for efficiency, with plans for a continuous schedule starting in mid-2025 and hinterland transport services by rail from Wilhelmshaven to Budapest.

Collaborative Efforts

Zhejiang Seaport Logistics Group, along with partners such as Kawa Shipping, Central European Trade and Logistics Cooperation Zone (CEZC), and container terminal Wilhelmshaven JadeWeserPort (CTW JWP), are driving the initiative to enhance maritime connectivity and logistics reliability between Asia and Europe.

The Panama-flagged 30,300 dwt Kawa Ningbo boxship, part of Kawa Shipping’s fleet, recently embarked on its maiden voyage via the CEX service to test the new express shipping route’s efficiency and potential for optimizing transport times. The vessel is expected to arrive in Wilhelmshaven on January 24, marking a significant milestone for the company’s operations.

With a focus on connecting the European hinterland and improving trimodal connectivity through JadeWeserPort, Kawa Shipping aims to elevate its logistics capabilities and strengthen its presence in the global shipping market.