CMA CGM Orders Four Boxships from COSCO Zhoushan

COSCO Shipyard French shipping giant CMA CGM has ordered four 3,300 TEU container vessels from the Chinese COSCO (Zhoushan) Shipyard, a subsidiary of COSCO Shipyard Group. Under the contract signed between the parties, the new containerships are scheduled for delivery between March 31, 2018 and August 31, 2018. COSCO Zhoushan and CMA CGM have agreed to keep the contract prices confidential, according to the shipbuilder. Barring any unforeseen circumstances, the above transactions are not expected to have a material impact on the net tangible assets and earnings per share of the company for the year ending 31 December 2016, the shipbuilder said. At the beginning of May, COSCO Zhoushan signed a contract to build two 113,000 DWT crude oil tankers for an undisclosed European buyer. The crude oil tankers are scheduled for delivery in the first and second quarters of 2018, respectively. The contract comes with the option to build two more 113,000 DWT tankers. COSCO Corporation (Singapore) Ltd, majority owner of COSCO Shipyard Group, saw a 26.9% drop in turnover from its shipyard business to USD 716.6 million from USD 980.8 million in Q1 2015. As at 31 March 2016, the group’s order book stood at USD 7.6 billion with progressive deliveries up to 2018.