French container line CMA CGM is reported to have selected China’s state-owned Dalian Shipbuilding Industry Co. (DSIC) for a new round of ultra-large container ship construction.
According to industry sources, the company is negotiating for up to 10 dual-fuel vessels of around 22,000 TEU, with an estimated total value of about $2.1 billion.
The vessels would be designed to operate on both LNG and conventional marine fuels.
Trade sources in Asia and Europe describe the discussions as advanced, with DSIC seen as having an advantage on price and available slots over rival yards.
Chinese trade media report that a letter of intent has been signed.
Brokers compare the per-unit cost with recent LNG dual-fuel ultra-large container vessel deals at around $210–220 million per ship.
Neither CMA CGM nor DSIC has made an official announcement.
The potential move follows CMA CGM’s earlier orders for 18,000-TEU LNG dual-fuel ships split between South Korea’s HD Hyundai Heavy Industries and Chinese yards. It also comes after CMA CGM chief executive Rodolphe Saadé announced in March a $20 billion four-year U.S. investment plan and a commitment to triple the company’s U.S.-flag fleet to 30 vessels by 2029.
“Over the next four years, we will significantly grow our U.S.-flagged fleet… and establish a significant air cargo hub in Chicago,” Saadé said at the time, noting that the plan would create 10,000 American jobs.
CMA CGM S.A. is a privately held French shipping and logistics group headquartered in Marseille. It operates globally in container shipping, logistics, and air cargo.
Dalian Shipbuilding Industry Co., Ltd. (DSIC) is a Chinese state-owned enterprise and a subsidiary of China State Shipbuilding Corporation (CSSC).
HD Hyundai Heavy Industries Co., Ltd. is a South Korean company incorporated under Korean law and part of HD Hyundai Group. It is one of the largest shipbuilders in the world, producing commercial and naval vessels, as well as offshore facilities.
China State Shipbuilding Corporation (CSSC) is a Chinese state-owned conglomerate and the parent company of DSIC. It oversees a wide range of shipbuilding and marine engineering businesses across China.