News ID: 78668 |
Publish Date: 15:15 - 26 February 2018

CMA CGM to Order at HHI

CMA CGM has placed orders for up to 12 liquefied natural gas-fuelled 14,000 teu containerships from South Korea’s Hyundai Heavy Industries.

CMA CGM to Order at HHI
According to MANA, One leading broker said in its latest report that the French containership owner has signed a letter of intent with HHI for six ships, with an option on six more, while an industry source has also confirmed the orders with Lloyd’s List.
An HHI official said: “The company has nothing to comment on yet.” 
According to South Korea’s local media reports, CMA CGM had proposed a price of $130m per ship for the orders.
The price per vessel was pushed up from $125m because it was agreed the ships would be equipped with dual-fuel engines.
Chinese shipbuilders were reported to have offered between $106m and $108m to build ships at the beginning of the contract negotiations. 
The French Line had ordered nine 22,000 teu ships equipped with dual-fuel engines last year in China and later entered into a 10-year contract with Total to purchase 300,000 tonnes of LNG per annum, as part of the efforts to comply with the International Maritime Organization’s global sulphur regulations, which are due to take effect from 2020.
At that time, HHI was also reportedly in negotiations for the orders, but the French firm decided to employ the Chinese shipbuilders, citing price as the main reason.
CMA CGM is spearheading the initiative to adhere to the IMO’s emissions regulations among global shipping companies. 
For instance, the French line has been working closely with compatriot oil and gas firm Total. 
In early February, Total signed a long-term charter contract with Mitsui OSK Lines for a 18,600 cum vessel, to be built by China’s Hudong-Zhonghua Shipbuilding and scheduled for delivery in 2020.
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