CMA CGM upgrades the size of 6 ships on order from 12,600 to 17,700 TEU

By Finance

CMA CGM has confirmed the size upgrade of six new container vessels. The ships currently are under construction at shipyards in South Korea and China. Their capacity will be upgraded from 12,600 TEU to 17,700 TEU

According to Lloyd’s List, the news has been announced by Michel Sirat, chief financial officer of CMA CGM. He said:

“Size is more and more important in this industry.”

The news ended months of speculations, during which the company was expected to invest in mega-size ship to keep up with Maersk and MSC (the three companies are P3 partners). 

Three of the ships for upgrade are being constructed by Shanghai Waigaoqiao Shipbuilding. They have already been up-sized from 12,600 TEU to 16,000 TEU. The other three are being constructed by Samsung Heavy Industries with original order for 12,600 TEU vessels. 

Last July, CMA CGM signed a contract for long-term bareboat charter for three container vessels with capacity of 16,000 TEU. The ships were order by CSSC Shipping Hong Kong, a leasing subsidiary at China State Shipbuilding Corp.

According to Michel Sirat, CMA CGM expects the market to remain under pressure caused by the persistent mismatch between supply and demand. The company will focus on fast-growing regions (Africa for example), it will develop port infrastructure and will launch new services.