Another big box ship order raises over capacity worries

MSC order for five 22,000 TEU box ships may be followed by order for a further six MSC order for five 22,000 TEU box ships may be followed by order for a further six

SEPTEMBER 21, 2017 — Analysts are worried that the container shipping industry is about to build itself a whole new lot of overcapacity.

South Korea's Daewoo Shipbuilding & Marine Engineering Co. said in a regulatory filing today that it has clinched a 927 billion won (US$818 million) deal to build five container vessels for delivery by March 15, 2020.

The shipbuilder did not reveal the name of the buyer, but it is understood to be Geneva headquartered Mediterranean Shipping Company (MSC), the world's second largest container shipping company.

According to reports, the ships are 22,000 TEU mega carriers and MSC is expected soon to order six more, according to some reports those ships will be built at Samsung.

The news follows the September 15 announcement that Marseille, France, headquartered CMA CGM had approved an order for nine 22,000 TEU containerships, with the builders now confirmed as China State Shipbuiding Corporation's Shanghai Waigaoqiao Shipbuilding Co. and Hudong Zhonghua Shipbuilding (Group) Co.

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