High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Hong Kong-based Orient Overseas (International) Limited (OOIL) revealed Wednesday that it has entered into shipbuilding contracts with Samsung Heavy Industries for the construction of six 20,000 TEU containerships, making it the latest in a growing list of carriers who opt for ships at or above the 20,000 mark.
OOIL is parent company to Orient Overseas Container Carriers (OOCL), one of the world’s leading container transport and logistics companies. The order was place through six indirect wholly-owned subsidiaries of OOIL.
The six ships were ordered for total price tag of USD $951.6 million, or about $158.6 million per vessel, OOIL said in statement. The company says it expects to receive financing for up to 70% of the total purchase price, and that the remaining 30% will be paid for with internal resources.
The vessels are expected to be delivered in 2017.
The order follows OOCL’s G6 Alliance partner MOL’s order for four 20,150 TEU ships from Samsung announced in early March. MOL also announced the long-term charter of two additional 20,150 TEU capacity containerships with Shoei Kisen Kaisha to be built at Imabari Shipbuilding Co. The six vessels will be launched and delivered in 2017, and will serve the Asia-Europe service.
Earlier this week, France’s CMA CGM, the world’s third-largest container shipper and part of the “Ocean Three” UASC and CSCL, announced plans to order three 20,600 TEU ships from South Korea’s Hanjin Heavy Industries & Construction Co. The three ships are expected to be delivered in the third quarter of 2017.
Earlier this year, Imabari Shipbuilding revealed that is also building 11 additional vessels of 20,000 TEU for an unidentified European owner that is believed to be Evergreen Group. Delivery of those vessels is expected to begin in 2018.
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