German tonnage provider Danz und Tietjens Schiffahrtsgruppe, also known as DT Bereederungs, has realised a 627% profit from selling one of its ships to Taiwanese liner operator Wan Hai Lines.
The 2006-built 5,527 TEU ship, Allegoria, was sold to Wan Hai for US$109.5 million, the company said in a Taiwan Stock Exchange on 11 March.
DT Bereederungs, which owns seven boxships, had bought Allegoria for US$15 million in October 2019, shortly before Covid-19 broke out. The pandemic created logistical logjams that sent freight rates rocketing, in turn causing asset values to appreciate.
Wan Hai has paid a premium of over US$18 million to buy Allegoria, which is currently valued at US$91 million.
The ship is expected to be assigned to the US West Coast service, and given current freight levels, Wan Hai could recoup the investment after three trips.
In December 2021, Wan Hai launched a third ship acquisition budget of US$320 million, after setting aside US$200 million the previous month and US$360 million in 2020.
Since then, Wan Hai has bought 24 second-hand ships.
Martina Li
Asia Correspondent
