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Jiangnan Shipbuilding Signs LOI for 2+2 14,000 TEU Containerships

Jiangnan Shipbuilding (Group) Co., Ltd, a subsidiary of China State Shipbuilding Corporation (CSSC), has been inundated with news of recent orders, with up to four 14,000 TEU neo-Panamax containerships about to be finalized.

Old customer returns to Jiangnan Shipbuilding and signed a new order for the main construction products

According to Trade Winds, Bal Container Line (BAL), which is part of the LC Logistics, has returned to Jiangnan Shipbuilding to sign a letter of intent for the construction of 2+2 14,000 TEU neo-Panamax containerships for at least US$150 million (RMB 1,085 million) each, and if all of the option orders come into effect, the total value of the order for the four new shipbuildings will be at least US$600 million (about RMB 4.338 billion).

The new shipbuildings will run on conventional fuel and be fitted with desulphurization units, with the first two units expected to be delivered by the end of 2027. If the order is confirmed, it will be another containership order for BAL after 3 years.

As shown on the official website, BAL is a subsidiary of LC Logistics, which was established in Hong Kong, China on August 14, 2012, with its headquarter located in Shanghai, and is mainly engaged in container transportation, ship operation, container operation and other related businesses on international routes.

At present, the company focuses on characteristic self-operated ocean routes such as North America, South America, Europe, Australia, etc., and near-ocean routes such as Japan, South Korea, Taiwan, Southeast Asia, etc., which are complementary, and it is actively building itself into a digitalized logistics enterprise oriented on the drive of container liner transportation.

The above letter of intent for the construction of large containerships is not the first cooperation between BAL and Jiangnan Shipbuilding. In June, 2022, BAL ordered two 14,000 TEU containerships from Jiangnan Shipbuilding, which are BAL’s first containerships with over 10,000 standard containers.

On March 15 this year, Jiangnan Shipbuilding has officially kicked off the construction of the first 14,000 TEU containership series for BAL. This containership belongs to the main construction products of Jiangnan Shipbuilding, which is a new high-efficiency, green, energy-saving and environment-friendly ultra-large containership designed by Jiangnan Institute of Technology.

Container ship order “small peak” is coming! 50 units worth about $7.5 billion

Clarkson data show that in the first four months of this year,new orders for containerships only 29, which are all undertaken by Chinese shipbuilders, its order quantity is much lower than the same period in the past. So far this year, the largest containership order was placed by Japan’s ONE, which ordered a total of 12 13,000 TEU methanol dual-fuel container ships from Jiangnan Shipbuilding (6 units) and Yangtzekiang Shipbuilding Group (6 units), with a total order value of nearly $2 billion.

Although the containership new shipbuilding market is weak in the first quarter of this year, according to industry sources, a number of container shipping companies have recently made inquiries to the shipyard for new containerships. It is expected that more than 50 new containerships worth about $ 7.5 billion will be placed in the next few months, and the containership market may usher in a “small peak” of orders.

In addition to BAL, a number of liner companies, including China COSCO Shipping, France’s CMA CGM Group, ONE and others, are ready to order new containerships, and many of these shipowners plan to order large containerships of more than 10,000 TEUs.

Also, China’s Taiwan-based liner company TS Lines was disclosed last week to have signed a letter of intent with China State Shipbuilding Group’s Shanghai Waigaoqiao Shipbuilding (SWS) for the construction of up to 8 containerships in 2 types, including 2+2 14,000 TEU containerships and 2+2 8,000 TEU containerships.

China COSCO Shipping is planning to order 10 11,000 TEU containerships and 12 14,000 TEU containerships, and is currently in contact with Chinese shipyards, according to a source. CMA CGM Group is also promoting the containership program, which is still in the early stage, including 12 14,000 TEU containerships, as well as a certain number of 4,000 TEU and 8,000 TEU containerships.

It is worth noting that, in addition to containerships, Jiangnan Shipbuilding has also recently reported the news that it has signed an order for 2+2 93,000 m3 liquefied petroleum gas (LPG) dual-fuel-powered very large liquid ammonia carriers (VLACs). The first two VLACs are expected to be delivered in 2026. The order, placed by ADNOC L&S through its joint venture AW Shipping, would if confirmed be ADNOC L&S’s first foray into the VLAC market and would be the first VLAC contract made public by the Chinese shipbuilding industry so far this year.

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