[120711.EN.SEA] New World Alliance Members Order 14,000-TEUers For The Asia-Europe Trade

SINGAPORE's Neptune Orient Lines' (NOL) container unit, APL, has signed a deal with two South Korean shipyards to build 12 vessels, ten of them, 14,000 TEU ships, five of which will be on three-year charters to Japanese shipping giant and fellow New World Alliance member, MOL.

Separately, MOL has two 8,600-TEU ships from Mitsubishi Heavy Industries on order with delivery expected in 2013. "Along with eight 8,100-TEU ships already in operation, the new vessels will be deployed to Asia-Europe routes," said MOL.

In the NOL batch, the bigger ships will be built by Hyundai Samho Heavy Industries as well as two 9,200-TEUers ordered from Daewoo Shipbuilding & Marine Engineering Co. These ships are destined for the Asia-Europe trade as well.

Said NOL: "Consideration of the charter agreement went into the decision to order the ten 14,000-TEU ships - viewing it as a means of balancing the alliance's capacity contribution, and allowing APL to increase its capacity gradually."

Despite the flexibility offered by smaller 8,000 TEUers, the economics do not add up against the 13,000 TEUers with analysts saying cost differences between a 6,500 TEU and a 13,000 TEU ships are US$250 in favour of the larger vessel, said London's Containerisation International.

Source : HKSG.