Hyundai Heavy Industries has begun construction on the first of five 19,000 TEU (twenty-foot equivalent unit) container vessels for China Shipping Container Lines Co. Ltd. (02866.HK, 601866.CN), National Business Daily reported Tuesday, citing the shipbuilder. The ships are the largest of their kind in the world. The new vessels, worth US$687 million, cut fuel consumption by 20 to 30 percent with their economies of scale. They will allow China Shipping to retire older vessels. While more fuel efficient, larger vessels could create obsolete capacity, the report said, quoting unnamed industry sources. The first delivery is due at the end of this year, with subsequent ones in each of the following four months, the report said.
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