CMA CGM Places $3 Billion Shipbuilding Order in China
French container shipping line CMA CGM has ordered 16 containerships from China State Shipbuilding Corporation (CSSC) in a record-setting deal worth upward of $3 billion.
The 21 billion Yuan ($3.06 billion) shipbuilding order, said to be the largest ever placed for containerships in China, is for 12 methanol dual-fuel 15,000 TEU vessels and four liquefied natural gas (LNG) duel-fuel 23,000 TEU vessels.
The 15,000 TEU ships will be constructed at Jiangnan Shipyard and Dalian Shipbuilding Industry (DSIC), and the 23,000 TEU ships will be built at Hudong-Zhonghua.
The order was signed April 6 as part of a series of agreements concluded by French companies during a state visit by French President Emmanuel Macron and European Commission President Ursula von der Leyen, Chinese state media reported. CMA CGM’s Rodolphe Saadé was among several French CEOs present for the trip.
For CSSC, the record booking continues a string of newbuild orders from CMA CGM, with the Chinese shipbuilding conglomerate reporting that the French carrier has ordered more than 70 containerships to be built in China over the past 10 years, including more than 30 that have already been delivered.
The deal also adds to a surge of containership newbuild activity as carriers reinvest recent years' profits into modern, more fuel-efficient tonnage. However, many analysts see the swelling orderbook as a cause for concern amid falling container shipping demand.
