DSME terminates deal for 6 containerships

South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) revealed a contract termination for six containerships worth $711 million.

The contract was won in December last year from an undisclosed owner from Africa. The containerships were scheduled for delivery by the end of October 2022.

According to DSME, the reason behind the termination is the fact that the African owner had failed to fulfil the contract terms in order to move forward with the contract.

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The cancellation is being reported in the wake of a major deal won by the yard from the German liner giant Hapag-Lloyd.

Namely, Hapag-Lloyd ordered six LNG-powered 23,500+TEU container vessels from DSME worth $ 1 billion.

The ships will be delivered between April and December 2023.

Separately, at the beginning of this month, Daewoo Shipbuilding signed a Letter of Intent (LoI) to build 10 LNG-powered very large crude carriers (VLCCs) for an undisclosed European client.

If the contract for the ten 300,000-ton dual fuel VLCCs moves forward, its value could hit KRW 1.1 trillion ($1 billion), with each tanker estimated to be worth around $100 million.