With another wave of orders in the containership newbuilding market, Chinese Taiwanese shipping company Wan Hai Lines is planning to order a number of large containerships after placing an order for 20 methanol dual-fuel medium-sized containerships.
Wan Hai Lines is negotiating with South Korea’s HD Hyundai Group and Samsung Heavy Industries on the construction of 15,000 TEU dual-fuel containerships, with the number of new vessels ranging from 4 to 10, and the type of fuel has not yet been determined, according to Korean media sources.
For reference, the current cost of a single LNG-powered large containership is estimated to be more than $220 million, and the cost of a single methanol-powered large containership is at least $200 million. Based on this calculation, the total value of the order for Wan Hai Lines will be at least between $880 million and $2.2 billion if chooses LNG fuel, and between $800 million and $2.2 billion if chooses methanol fuel.
Currently, Wan Hai Lines is increasing its newbuilding orders to cope with high freight rates and environmental regulations. Last week (August 12), Wan Hai Lines announced that its subsidiary, Wan Hai Shipping (Singapore) Pte Ltd, has signed a letter of intent (LOI) for the construction of a total of 2 types of 20 methanol dual-fuel containerships with CSBC Corporation, Taiwan and HD Hyundai Samho. The move is aimed at promoting fleet upgrades to improve operational efficiency and enhance the competitiveness of its long-haul transportation services.
The LOI includes 12+4 8,000 TEU methanol dual-fuel containerships and 4,8,700 TEU methanol dual-fuel containerships, with a total value of up to approximately $3.0 billion, all of which are expected to be delivered between the third quarter of 2027 and the third quarter of 2030.
Among them, the 12+4 8,000 TEU containerships will be built by CSBC Corporation, Taiwan, with a unit cost of $102.5 million to $124 million, and a total value of $1.64 billion to $2.48 billion if all of them come into effect. The four 8,700 TEU containerships will be built by HD Hyundai Samho, with individual shipbuilding costs in the range of $113.5 million to $130.41 million, and a total value in the range of $454 million to $521.64 million.
It is worth noting that this is the first time for CSBC Corporation, Taiwan to build dual-fuel vessels, and also the first time for CSBC Corporation, Taiwan to undertake batch merchant ship orders since 2018, with the largest single merchant ship order obtained by the shipyard so far.
In addition, the LOI announced on August 12 for the construction of 20 new containerships is also the first time for Wan Hai Lines to invest in the construction of methanol dual-fuel containerships. Currently, methanol is regarded as the next generation of clean marine fuel. Compared with traditional marine fuels, methanol can significantly reduce the emission of pollutants such as sulfur oxides (SOx), nitrogen oxides (NOx) and greenhouse gases.
Wan Hai Shipping had made a big push to expand its fleet by placing shipbuilding orders between 2021 and 2022, including 12 3013 TEU feeder containerships and 12 3055 TEU feeder containerships from Japan Marine United (JMU); 13 13,100 TEU containerized large-scale containerships from Samsung Heavy Industries; five 13,200 TEU large-scale containerships from HD Hyundai Heavy Industries (formerly Hyundai Heavy Industries); and four 3,000 TEU feeder containerships from CSBC Corporation, Taiwan.
In addition, Wan Hai Lines took delivery of nine new vessels in the first seven months of this year, namely three 13,000 TEU and six 3,000 TEU feeder containerships, and is expected to take deliver of one 13,000 TEU and two new 3,000 TEU feeder containerships by the end of this year. In 2025, three 13,000 TEU containerships are expected to be delivered and join the fleet.
