Singapore's NOL Group has ordered ten 8,400teu capacity containerships and signed a letter of intent for two 10,700teu vessels in a deal worth US$1.2 billion.

The series of 10 ships, to be constructed by South Korea-based Daewoo Shipbuilding & Marine Engineering, will be delivered in 2013 and 2014.

NOL, parent firm of APL, said it was investing in new vessels to meet future growth needs and to replace vessels with charter agreements that will expire in the next few years.

NOL CEO Ron Widdows has, in the past, said that the company had no plans to order vessels of more than 10,000teu because their size would restrict the trades they could be used on.