While the global new shipbuilding market has been generally sluggish this year, the container ship sector has bucked the trend. This is particularly true for feeder container ships, a niche segment that has seen a surge in orders. Notably, Chinese shipyards have emerged as the biggest winners amid this wave of orders.
German liner giant Hapag-Lloyd has shifted its newbuilding focus from large container ships to feeder vessels, according to TradeWinds.
Multiple shipbuilding sources have disclosed that Hapag-Lloyd has signed preliminary agreements with two Chinese shipbuilders to order up to 24 container ships ranging from 3,500 TEU to 4,500 TEU. The total value of the order is approximately $1.58 billion, with all vessels featuring methanol dual-fuel propulsion. Industry estimates suggest the individual shipbuilding costs per vessel are $70 million and $60 million respectively.
The report states that the two shipbuilders are CIMC Raffles and Taizhou Sanfu Shipbuilding. CIMC Raffles will be responsible for building 8+6 4,500 TEU container ships, while Taizhou Sanfu Shipbuilding will be responsible for building 6+4 3,500 TEU container ships.
It is worth noting that if these orders are ultimately fulfilled, they will be of landmark significance for both the shipowner and the shipbuilders. Reportedly, this batch of orders will mark CIMC Raffles’ first foray into container ship construction; while Taizhou Sanfu Shipbuilding will officially enter the methanol dual-fuel power vessel construction field through this order.
Not only that, but this will also mark a rare new shipbuilding project for Hapag-Lloyd. It aligns with the recent surge in orders for feeder container ships while also helping the company enhance its regional feeder transport network and achieve diversified development.
In terms of newbuildings, Hapag-Lloyd has historically favored ordering medium-to-large container ships and has never placed large-scale orders for feeder container ships. Instead, it has maintained its presence in this subsector of the shipping market through long-term charters and renewals of feeder container ships.
Official data shows that Hapag-Lloyd currently operates a fleet of 313 vessels, ranking among the world’s leading shipping companies on transatlantic routes, Middle East routes, Latin American routes, and intra-American routes. In the liner shipping market, Hapag-Lloyd maintains a fleet with a total capacity of 2.5 million TEUs and container handling capacity of 3.7 million TEUs, including one of the world’s largest and most advanced fleets of refrigerated container ships.
Notably, another major international shipping company, Singapore-based Eastern Pacific Shipping (EPS), has also placed bulk orders for feeder container ships this year. Reports in August indicated that EPS had ordered 12+6 1,800 TEU feeder container ships from Fujian Shipbuilding’s shipyard.
Due to a backlog of orders from earlier periods and the impact of geopolitical factors, the global new shipbuilding market has been relatively sluggish this year. With order volumes across all ship types performing poorly, the container ship market has become the standout performer this year, with feeder container ships being the most noteworthy sub-market.
In October alone, Chinese shipbuilders secured orders for over 40 new ships, with Huangpu Wenchong Shipbuilding, Yangzijiang Shipbuilding, Zhoushan Changhong International Shipbuilding, Hengli Heavy Industries, and other yards all signing new contracts. In this wave of orders, Chinese shipbuilders are undoubtedly the biggest winners!