DSME WIns Order for Five Mega Ships

October 15, 2019

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has secured an order for five new container ships set for delivery next year. The contract is worth KRW 903.9 billion (about USD 762 million), DSME said in a stock exchange filing.

DSME announced the order without naming the buyer. But according to a WSJ report, Mediterranean Shipping Co.(MSC) is the company that placed order for  five giant container ships in a new sign that ocean cargo carriers are building up their capacity despite falling freight rates and weak trade growth.

The report said that the Geneva-based MSC, the world’s second-largest container shipping carrier by capacity, exercised an option to buy the vessels as part of a previous order.

However, the shipbuilder has not disclosed any details on the owner of the newbuilds. Brokers indicate they will be scrubber-fitted 23,000 teu units,

The ships, described by DSME as “ultra large container vessels” are expected to be delivered by the end of August 2021.

Daewoo Shipbuilding posted sales of 4.2 trillion won and an operating profit of 394.4 billion won in the first half of the year, said a report in Yonhap.

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