France’s CMA CGM is boosting its container ship orderbook by inking deals for neo-panamax tonnage at a South Korean shipyard, chartering in recently ordered tonnage and signing letters of intent (LOIs) for ultra-large container ships in China.
Shipbuilding sources said CMA CGM has returned to Samsung Heavy Industries and ordered four LNG dual-fuel 7,400-teu boxships for delivery dates starting in 2024. The deal includes an option for three additional vessels.
They named CMA CGM as the European company behind the order of four LNG dual-fuelled container ships that SHI announced on Friday.
The shipyard did not reveal the name of the buyer or the size of the boxships in the regulatory filing, but it said the four newbuildings were worth KRW 609bn ($492m) or $123m each.
This latest contract for CMA CGM brings the tally of firm neo-panamax vessels for the liner giant at SHI to 10. The earlier sextet was ordered in 2021.
Those following the business said these latest neo-panamax vessels for CMA CGM at SHI cost $3m per ship more than its earlier six vessels. They blame the increase in material costs and strong demand for container ship newbuildings for the price rise.
In addition, CMA CGM is said to have chartered three LNG dual-fuel 7,900-teu newbuildings from Singapore’s Eastern Pacific Shipping.
The vessels have been fixed for at least eight years but a charter rate on them has yet to emerge.
Idan Ofer-controlled Eastern Pacific contracted the boxships at Hyundai Samho Heavy Industries paying around $118m apiece for the vessels, which are scheduled for delivery in the second half of 2024.
Eastern Pacific chief executive Cyril Ducau declined to comment when contacted.
But CMA CGM is not stopping there and is shifting its focus back onto the largest size of boxship where it has been a pioneer on LNG-fuelling.
The liner company has lined up slots for nine 23,000-teu, LNG dual-fuel ultra-large boxships that may cost it in excess of $2bn.
Several shipbuilding sources said the company has inked an LOI for nine ultra-large boxships with Chinese state-owned Jiangnan Shipyard.
Officials at Jiangnan denied the contract when contacted.
Market watchers priced the vessels at over $230m each, which would set a new benchmark high for this size and type of vessel if the orders are confirmed with the China State Shipbuilding Corp shipyard.
The last done deal for an ultra-large container ship was booked by Hapag-Lloyd in June 2021.
The German liner company signed up to six LNG dual-fuelled, 23,000-teu vessels at South Korea’s Daewoo Shipbuilding & Marine Engineering paying $165m each. The ships are due to be delivered by the end of 2024. In 2020, Hapag-Lloyd paid $155m for its first six in this series of ships from DSME.
One shipyard manager said he would not be surprised if CMA CGM had to pay more than $230m apiece for the ultra-large vessels in the current strong shipbuilding market.
“With the rise in shipbuilding materials and currency fluctuation plus the strong shipbuilding market, shipyards are already seeking around $190m for a dual-fuel 15,000-teu newbuilding,” the yard manager said. “One may have to pay much more for the 23,000-teu ships.”
