China Ocean Shipping Co (Cosco) and China Shipping Container Lines (CSCL) have placed orders worth more than US$700 million for 10 of the world's largest container ships, according to sources.
The vessels, each capable of carrying more than 7,500 standard containers, will be delivered from 2004.
The orders come despite over-capacity and depressed freight rates on East Asia-US west coast trade, which has also been plagued by port congestion following fallout from the US port shutdown in October.
Cosco and CSCL, China's two biggest shipping lines, will share the vessels through long-term charter agreements, paying US$30,000 a day over 10 years - about the market level for ships of this type and size, ship-broking sources said. It is not known which routes the vessels will use.
The orders were placed to South Korea's Hyundai Heavy Industries through German shipping and finance companies, shipbuilding sources said.
Cosco sources confirmed a deal had been struck with German shipping tycoon Erck Rickmer's ER Shipping. CSCL sources declined to comment on the deal.