Maersk Line said it is likely to exercise the first half of a 20-vessel option for additional ships under a $5.4 billion deal with shipbuilder Daewoo.

Maersk confirmed that it placed an order with Daewoo Shipbuilding & Marine Engineering for 10 large new vessels and took an option on a further 20.

Maersk Line Chief Executive Eivind Kolding told a news conference the company was likely to exercise the first half of the 20-ship option and would need to decide on that this year.

He said the option on the final 10 ships was "more of an open option."

Kolding said the new 18,000 TEU (twenty-foot equivalent unit) vessels would cut unit costs by 26 percent for each container moved. (Reuters)