Hanjin and China Shipping plan new vessel orders

Hanjin Shipping. South Korea's largest shipping line, and China Shipping (Group) said they were close to ordering new vessels as world trade rebounds from the global recession, according to the Manila Bulletin.

Hanjin may announce a deal for mid-size container ships by as early as year-end, chief executive officer Kim Young Min said at a conference in Guangzhou, China.

China Shipping will make an order soon, president Li Shaode said at the same event. He declined to say which type of ships the group was looking at.

Evergreen Group is also near to ordering about 10 ships, part of plans to buy 100, as trade recovers from a slump last year that caused industry-wide losses.

Global container-shipping volume may jump as much as eight percent next year, as economic growth in the US and Europe spurs demand for Asian-made goods, Kim said.

"The worst is over for Asian shipping lines, so it's a good time to order vessels," said Minoru Matsuno, president of Value Search Asset Management, a Tokyo-based investment advisory firm. “At the same time, the industry needs to ensure it doesn't repeat the overcapacity mistakes that helped hammer rates last year."

Evergreen Group, Asia's largest container line, plans to order ships able to hold about 8,000 containers, said vice-chairman Bronson Hsieh. The Taiwan-based company has ordered 20 similar vessels, worth about US$2 billion, from Samsung Heavy Industries since June.

Neptune Orient Lines has ordered 12 ships from Daewoo Shipbuilding & Marine Engineering in the same period.

The global economy is recovering and the shipping market is "roaring", said Wei Jiafu, chairman of China Cosco Holdings, Asia's biggest shipping line by market value.

Still, the industry needs to adopt a more rational mentality to prevent a glut of new vessels from damping rates. China Cosco has no plans to order vessels this year, and it will assess market conditions before deciding on fleet plans next year, he said.
(Source:www.cargonewsasia.com)