Denmark’s A.P. Moller-Maersk, the world’s second-largest shipping company by cargo capacity, has invited bids from major shipbuilders in South Korea and China for a $2.8 billion newbuild program. Industry sources say Chinese yards are more competitive on price, while South Korean rivals emphasize quality and reliable delivery schedules.

According to shipbuilding industry officials on Aug. 8, Maersk earlier this month received proposals from South Korea’s HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries to construct 12 dual-fuel container ships with a capacity of 18,000 twenty-foot equivalent units (TEU). One TEU equals a standard 20-foot shipping container.

The bids outline two possible arrangements: eight firm orders with an option for four more vessels, or six firm orders with an option for six additional ships. Maersk has sought identical information — including prices and possible delivery dates — from Chinese shipbuilders.

For 18,000-TEU dual-fueled vessels, Chinese yards are offering prices about $20 million lower per ship, or roughly 27.6 billion won, raising the prospect they could win the order. South Korean builders, however, are underscoring their strengths in build quality and meeting delivery commitments.

Maersk has told shipbuilders it wants the vessels delivered by 2029, the year the International Maritime Organization (IMO) plans to introduce carbon taxes on ships based on greenhouse gas emission efficiency. South Korea’s shipyards are regarded as having an advantage in producing environmentally compliant vessels.

Chinese yards have already secured a heavy backlog of orders, limiting available dock space. Danish Ship Finance projects that by 2027, leading Chinese shipbuilders will be operating at 95% capacity, compared with about 70% for their South Korean counterparts.

Data from British maritime analysis firm Clarksons Research shows that as of 2028 and beyond, South Korea’s HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries have scheduled deliveries totaling 6.744 million compensated gross tons (CGT). In comparison, China’s CSSC, COSCO, CMI and Yangzijiang Shipbuilding have 20.357 million CGT scheduled. With Chinese order books filling fast, some forecasts suggest vessels ordered this year could take more than five years to deliver.

“Since Chinese shipbuilders secured roughly 70% of all global orders last year, South Korean yards may be better positioned to meet Maersk’s preferred delivery timeline,” an industry official said.
Source: THE CHOSUNILBO