Korean firm to get $2.7b ship order

STX Offshore and Shipping (STXOS) is close to signing a US$2.78 billion container ship order, the largest such deal in the industry, reported Maeil Business Newspaper.


STXOS' deal is bigger than the $2.05 billion Maersk contract with Daewoo Shipbuilding and Marine Engineering in February, marking the industry's single largest contract.


The shipbuilding industry forecasts that the Korean shipbuilding industry will continue to thrive in the global shipbuilding market, as Korean shipbuilders almost sweep global ship orders, ranging from resource development facilities to super large container carriers.


According to the industry, STXOS signed a Letter of Intent (LOI) with Canadian shipper Seaspan to build 10 units of 14,000 TEU container carriers. In addition, the contract includes an option that Seaspan will order 10 units more, if the first delivery proves no big glitches. The average price per carrier amounts to $140 million.


“STXOS signed the LOI for 10 container ships in Canada and the formal contract is drawing nearer. Although the numbers of ships and prices have not been fixed yet, there is a high possibility that STXOS will even win the optional deal with no difficulty,’’ an official from the global shipping industry said.


The container ship that STXOS is going to build is 310m in length and 45m in width, about the size of three football fields. The container ship of this size is classified into the super large class, same as the 18,000 TEU container ships deal between Maersk and Daewoo.
(Source:http://www.cargonewsasia.com)