MSC books a dozen 16,000 TEU vessels at Yangzijiang

Yangzijiang Shipbuilding has confirmed that MSC has ordered a dozen 16,000 TEU container ships.

The Singapore-listed Chinese ship builder said on 6 October that the LNG dual-fuelled ships, with a total contract value of US$2.16 billion, are among US$2.51 billion of new orders secured between August and early October 2022.

 

The vessels are expected to be delivered from late 2024 to mid-2025 and bring MSC’s current orderbook to 114 ships of over 1.56 million TEU. The largest liner operator now has an operating capacity of 4.5 million TEU.

 

Yangzijiang chairman Ren Letian said that the new orders bring its existing orderbook to US$10.27 billion, the highest in its history, and extend its revenue visibility to mid-2025.

 

Year-to-date, Yangzijiang has secured new orders for 40 vessels worth approximately US$3.6 billion, exceeding its 2022 target of US$2 billion.

 

Ren said, “The stricter environmental regulations in recent years have given rise to a growing demand for green vessels and we are poised to be a beneficiary of this growth.”

 

CIMB Securities analyst Lim Siew Khee noted that while the recent correction in container freight rates has begun discouraging ship owners from ordering more newbuildings, Yangzijiang is unlikely to be hit by order cancellations.

 

Clarksons data shows that in the first eight months of the year, boxship newbuilding orders decreased 78% year-on-year to 13 vessels, as average monthly freight rates slumped 31% year-on-year.

 

Lim said, “Large, financially-backed ship owners constitute most of the existing customers on Yangzijiang’s orderbook; and Yangzijiang now receives a 40% deposit prior to delivery (10% upon order confirmation, 30% milestone payments), versus 30% previously.”

 

Sourcecontainer-news.com by Martina Li
 


Related News

AIRFREIGHT RATES STILL TUMBLING AS SOFT MARKET SPARKS EARLY CNY FACTORY CLOSURES
AIRFREIGHT RATES STILL TUMBLING AS SOFT MARKET SPARKS EARLY CNY FACTORY CLOSURES

1224 Views

With factories already closing in China, ahead of next week’s new year holiday, airfreight rates on major routes have continued to decline.

 

Maersk expands contract options amid rumours it intends to shun forwarders
Maersk expands contract options amid rumours it intends to shun forwarders

1853 Views

As it continues to drive its container line services towards a high majority of long-term contract business, Maersk has introduced six different types of agreement for the 2022 tender season.

 

KMTC CONTAINER SHIP SUFFERS FIRE OFF MALAYSIA
KMTC CONTAINER SHIP SUFFERS FIRE OFF MALAYSIA

1046 Views

The 2,778 TEU container ship KMTC Shenzhen experienced a fire off Port Klang in Malaysia on 12 August, according to the UK insurance company WK Webster.


Comment
  • Your review
main.add_cart_success