New Times Shipbuilding of China is said to have struck a deal with Mediterranean Shipping Co (MSC) for 14 LNG dual-fuel neo-panamax container ship newbuildings worth more than $1.68bn.
Shipbuilding sources said the vessels inked are firm and the order does not include options.
New Times officials declined to comment on the yard’s shipbuilding activities, citing contract confidentiality. MSC told TradeWinds that it does not “comment on the specifics of its newbuildings pipeline”.
MSC’s order brings the total tally of neo-panamax container ships of between 7,000 teu and 8,000 teu booked by shipping companies to more than 100 vessels.
Seaspan Corp, TS Lines, X-Press Feeders Group, Danaos Shipping and CMA CGM are among those who have ordered the new compact neo-panamax boxships.
Dubbed the future workhorse of the sector, the ship size is in strong demand as it is flexible enough to trade from Far East Asia to the Middle East, as well as on north-south trades. As such, they are expected to replace existing vessels of between 4,000 teu and 5,000 teu.
Shipbuilding sources said MSC is paying slightly more than $120m each for the ships that will be fitted with type-B tanks.
They added that if confirmed, the deal would be the largest single newbuilding contract for New Times since its launch in 2000.
MSC is the second company to have ordered neo-panamax container ships at the Jiangsu yard. Singapore’s Eastern Pacific Shipping was the first.
The Idan Ofer-controlled outfit has seven 6,983-teu boxships under construction at the yard to be delivered in 2023 and 2024. The scrubber-fitted vessels, equipped with 1,600 reefer plugs, were reported to cost about $80m apiece.
Shipbuilding sources said New Times is one of three shipyards approached by MSC for neo-panamax boxship newbuildings. The liner giant is said to be ordering the same ship type at Hyundai Heavy Industries and Chinese state-owned Qingdao Beihai Heavy Industry.
HHI is expected to secure six vessels and Qingdao Beihai eight ships.
If MSC firms up the deals at HHI and Qingdao Beihai, the outfit will have the largest number of neo-panamax boxships of between 7,000 teu and 8,000 teu on order.
Canada’s Seaspan Corp has 25 vessels of 7,000 teu under construction at yards in China. State-owned Shanghai Waigaoqiao Shipbuilding (SWS) is constructing 10 scrubber-fitted conventionally fuelled vessels, while Yangzijiang Shipbuilding is building LNG-powered boxships.
It has chartered out the SWS vessels to Ocean Network Express and the LNG dual-fuelled ships to Israeli carrier Zim.
