COSCO has confirmed an order for five 14,500 Twenty Foot Equivalent Unit (TEU) ships from China State Shipping Corporation's Shanghai Jiangnan Changxing Shipbuilding, it was revealed in a stock market announcement.

 

Last week, another CKYHE Alliance member, "K" Line, also ordered five 14,000-TEU, which are becoming standard unit on the Asia-Europe route, as well as being able to transit the expanded Panama Canal in some cases. All together, CKYHE will deploy seventy-five 13,000-14,500 TEU.

 

The Cosco ships are to be delivered in 2017 and 2018 for USD 618 million, or USD 123.6 million each, which compares with market value of USD 115 million to USD 120 million from Korean yards.

 

The orders, part of scheme to add five box ships and 30 bulkers, came after Beijing's scrap-and-build programme was announced. This involves subsidy financing in the scrapping 31 ships as well as bank loans.