More vessels for Transfar

News-in-print 1 Nov 2022 by WCN Editorial

Singapore-based Transfar Shipping is planning to order five dual-fuel (methanol)-powered vessels to expand its transpacific service offering. The new tonnage, which represents an investment of approximately US$650M, will enter service in 2024-25.

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The move comes at a time when spot freight rates are falling sharply and many of the smaller and regional carriers that entered some trades, such as the transpacific and Asia/Europe/Asia route, are being squeezed financially and withdrawing from the deepsea markets.

Transfar, though, which is owned by Chinese 3PL Worldwide Logistics, a company in which Cainiao, Alibaba’s logistics arm, has a sizeable shareholding, stressed that it is committed to the liner sector for the long term. Its investment is targeted at capturing a larger slice of Alibaba’s growing ecommerce business by making its services speedier and more cost-effective.

Ultimately, Transfar intends providing Alibaba with a dedicated loop with off-dock storage capacity, owned equipment, including chassis so that cargo clearance and distribution inland can take place very quickly. The carrier’s aspiration is to carry 80%-90% of Alibaba’s cargo transported by sea into the US.

Currently, Transfar operates seven much smaller ships with an aggregate capacity of about 22,000 TEU. Its latest vessel, the 1,800 TEU-capacity A GORYU, was delivered to the group at the end of September.

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This complete item is approximately 215 words in length, and appeared in the November 2022 issue of WorldCargo News, on page 17. To access this issue download the PDF here