Alibaba-Linked Transfar to Pour $650 Million Into Container Fleet Expansion

The Shanghai Containerized Freight Index published by the Shanghai Shipping Exchange, the world’s most-used benchmark for sea freight rates, fell by nearly 70% since the beginning of this year.

Alibaba Group-linked ocean freight operator Transfar Shipping Pte. Ltd. plans to buy five ships costing about $650 million in an acceleration of its fleet expansion even as the global shipping market weakens, several people familiar with the matter told Caixin.

The five container vessels would each have the capacity to convey 8,000 twenty-foot equivalent units (TEUs) between China and North America for the Singapore-based shipping company, the people said. The acquisitions will increase Transfar’s outlays on fleet expansion to $810 million this year after it bought four other container ships a few months ago.

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