July 3, 2008 / 12:34 PM / 11 years ago

UPDATE 1-Maersk Line orders 16 container ships from Daewoo

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COPENHAGEN, July 3 (Reuters) - Danish shipping and oil group A.P. Moller-Maersk (MAERSKb.CO) said its container unit Maersk Line ordered 16 ships from Daewoo Shipbuilding and Marine Engineering Co. Ltd. (042660.KS) for delivery in 2010-2012.

The container ships have individual capacities of 7,450 TEU (twenty-foot equivalent units) and can carry a record 1,700 refrigerated containers each, Maersk said.

The ships are destined for transportation of goods between the East Coast of South America and Asia and Europe, the world’s largest container shipping line said.

“We expect a continued strong growth in these markets,” said Michel Deleuran, Head of Network and Product in Maersk Line, in a statement. “We believe that this order shows our long-term commitment to providing service and support to our customers’ increasing business.”

Maersk said the trade between the East Coast of South America and Europe was driven by the export of food products such as poultry, meat and fruit in refrigerated containers and has grown an average 15 percent a year since 2002.

The company did not disclose financial details for the order.

Last month Maersk Line signed a deal to buy 18 new ships from another Korean producer, Hyundai Heavy Industries (009540.KS), for delivery in 2011 and 2012. That order was valued at $90 million per vessel, Hyundai said.

Since taking over Dutch rival P&O Nedlloyd in 2005, Maersk has seen its share of the world container market capacity decline from above 18 percent to around 16 percent last year, according to analysts, while its share of transported volume is lower. (Reporting by Gelu Sulugiuc, editing by Will Waterman)

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