Danish shipping giant Maersk is accelerating new orders, with plans for up to 12 new large container ships powered by liquefied natural gas (LNG) dual-fuel engines to be built by a private Chinese shipbuilder.
According to TradeWinds, Maersk has essentially selected New Times Shipbuilding to construct 8+4 LNG dual-fuel powered large container ships, with a total value of approximately $2.3 billion. Based on this calculation, each ship will cost around $192 million.
Market rumors suggest that Maersk has decided to increase the container capacity of this batch of container ships from 21,000 TEU to 22,000 TEU.
This disclosure of shipbuilders information aligns with Maersk’s previous announcement that it would finalize the contract by the end of the year. Maersk had previously inquired with several major shipbuilders in China and South Korea, and after several months of negotiations, ultimately favored New Times Shipbuilding for the project. Reportedly, the Chinese shipbuilder’s offer per ship was $20 million lower than that of the South Korean shipbuilder.
It is understood that the aforementioned fleet of up to 12 new buildings represents a batch of ships under Maersk’s fleet renewal program. To date, Maersk has signed newbuilding/charter contracts for 60 ships under this initiative, comprising 50 confirmed orders and 10 options.
In the field of large container ships, Maersk and New Times Shipbuilding have already collaborated in 2024. Last December, Maersk announced orders for 20 dual-fuel container ships across three shipbuilders in China and South Korea, including six 15,000 TEU LNG dual-fuel powered container ships from New Times Shipbuilding, scheduled for delivery starting in 2028.
It is also worth noting that the six LNG dual-fuel container ships project undertaken by New Times Shipbuilding last year was the first order in Maersk’s LNG dual-fuel new shipbuilding program and the first order Maersk placed for LNG dual-fuel powered ships. The order also included six alternative ships of the same type.
It is reported that New Times Shipbuilding has been primarily active in the tanker market this year, having publicly announced orders for nearly 20 oil tankers. Should Maersk’s large dual-fuel tanker order be confirmed and finalized, it would mark New Times Shipbuilding’s first publicly disclosed container ship contract in the market this year.
As one of China’s leading private shipbuilders, New Times Shipbuilding operates dry docks with capacities of 500,000 tons, 300,000 tons, and 100,000 tons. Its primary products include large and medium-sized bulk carriers, tankers, container ships, and various chemical tankers. With increasing orders, New Times Shipbuilding is investing RMB 5 billion to expand its production capacity. The new project, covering 900 mu (approximately 60 hectares), will include a new 700-meter dry dock. Upon completion, the shipbuilder will operate four dry docks.
Against the backdrop of a slowdown in the global new shipbuilding market, container ships have become the mainstay of new ship orders. While small and medium-sized container ships are highly sought after in the market, large container ships are also within the primary consideration of shipowners.
This year, several major liner shipowners, including Mediterranean Shipping Company (MSC), CMA CGM, Evergreen Marine, and HMM, have placed orders for new ships. For example, Evergreen Marine ordered 14 14,000 TEU container ships; HMM ordered 12 13,000 TEU container ships; Seaspan Corporation ordered 2 11,800 TEU container ships; and Korea Marine Transport Corporation (KMTC) ordered 2 13,000 TEU container ships.
Among these major shipowners, MSC has placed the largest number of orders, with over 20 ultra-large container ships ordered so far this year. All orders have been secured by Chinese shipbuilders, including Waigaoqiao Shipbuilding, Hengli Heavy Industries, Zhoushan Changhong International, China Merchants Heavy Industries Haimen shipyard (CMHI Haimen shipyard) , and China Merchants Industry Qingdao Shipyard.