Two months later, the large container vessel project of Yang Ming Marine Transport Corporation (Yang Ming), the second largest liner operator in Taiwan Province, China, was officially finalized.
On September 16, Yang Ming signed a contract with Hanwha Ocean for the construction of seven 16,000 TEU LNG dual-fuel container vessels. The total contract value ranges from $1.364 billion to $1.531 billion, with an average cost per vessel estimated at approximately $195 million to $219 million. The vessels are scheduled for delivery between 2028 and 2029.
This series of container vessels has a maximum capacity of 15,880 TEUs and is designed to meet the American Bureau of Shipping (ABS) certified “Ammonia Fuel Ready Level 1C” standard. Equipped with 1.0 bar Type B LNG fuel tanks jointly developed by Hanwha Ocean and ANS, these vessels significantly improve structural safety and fuel supply efficiency compared to traditional 0.7 bar designs. They can also effectively address future regulations related to shore power systems, providing a cleaner and more reliable energy transition solution.
Notably, these are Taiwan’s first LNG-powered dual-fuel container vessels to feature an ammonia-ready design. Together with the five 15,500 TEU LNG-powered dual-fuel container vessels HD Hyundai Heavy Industries plans to deliver starting in 2026, Yang Ming will have a fleet of 12 LNG-powered dual-fuel container vessels. This will increase Yang Ming’s low-carbon fleet and enhance its route flexibility and competitive advantage.
Yang Ming stated that during the transition toward net-zero carbon emissions, LNG stands as one of the more mature and economically viable alternative fuels. The adoption of dual-fuel design can effectively reduce greenhouse gas emissions by approximately 20%, aligning with the increasingly stringent environmental regulations set by the International Maritime Organization (IMO). This approach ensures operational efficiency in the current phase while paving the way for future adoption of ammonia fuel technology.
It is understood that Yang Ming announced on July 17th its order for seven large dual-fuel container vessels from Hanwha Ocean. After two months of finalizing contract details, the formal contract took place. The shipbuilding project initiated its bidding process in April, with three 8,000 TEU container vessels also tendered at the same time confirmed to be constructed by Nippon Shipbuilding.
According to the bidding documents, the large container ship project undertaken by Hanwha Marine will have a length of no more than 370 meters, a beam of no more than 51.25 meters, a speed of 22 knots, and a cruising range of approximately 25,600 nautical miles (LNG fuel mode) to 13,800 nautical miles (fuel mode); the medium-sized container ship project undertaken by Nippon Shipbuilding will have a length of no more than 275 meters, a beam of no more than 45 meters, a speed of 20.5-22 knots, and a cruising range of approximately 24,700 nautical miles.
Nippon Shipbuilding’s shipbuilding project for medium-sized container vessels incorporates methanol-ready design. The contract value ranges from $351 million to $394 million, with an average construction cost per vessel estimated at approximately $117 million to $131 million. Deliveries are scheduled to commence between 2028 and 2030.
Yang Ming has announced the launch of a fleet renewal program by the end of 2024, launching up to 13 medium- to large-sized container vessels to replace older 5,500- to 6,500-TEU container vessels that are over 20 years old. All 13 newbuildings have now been finalized: Hanwha Ocean has undertaken 7 vessels, Nippon Shipbuilding has undertaken 3 vessels, and Imabari Shipbuilding has undertaken 3 vessels. The total construction cost ranges from $2.054 billion to $2.284 billion.
Among these, three vessels from Imabari Shipbuilding were acquired through purchase. The original owner was Japan’s Shoei Kisen. These vessels also feature methanol-ready designs, with a total value ranging from $339 million to $360 million. The individual construction cost per vessel falls between $113 million and $120 million.
Yang Ming ranks 10th among global container shipping companies, second only to Evergreen Marine in Taiwan Province, operating a fleet of approximately 100 vessels. Regarding its fleet renewal plan, Yang Ming stated that it aims to maintain growth in line with the global shipping industry, promote fleet renewal and expand into niche markets, and incorporate a diversified clean energy strategy to enhance overall capacity and operational efficiency.