China COSCO has ordered11 newbuild 19,000 TEU container ships for $1.5 billion, all set for delivery in 2018.
China COSCO Holdings Company Limited (China COSCO) says it has ordered 11 newbuild 19,000 TEU ultra-large container carriers (ULCCs) for $1.5 billion, all set for 2018 delivery, World Maritime News reports.
China COSCO reports that six of the vessels are set to be built by Dalian COSCO KHI Ship Engineering Co.,Ltd (DACKS) and Nantong Cosco KHI Ship Engineering Co. Ltd (NACKS), three by Shanghai Waigaoqiao Shipbuilding Co.,Ltd., and the remaining two by Dalian Shipbuilding Industry Company.
The order is said to have been under consideration as early as April, and is the result of growing pressure from competition, even among low freight rates and the container market's overcapacity.
China COSCO stated that it will finance the vessel order through a combination of internal sources and bank loans.
In August, it was reported that there were increasing signs of a merger between two of China's state-owned shipping enterprises, China Ocean Shipping (Group) Company and China Shipping (Group) Company (CSG) but so far there has been no word on whether the deal will go ahead.