As the container shipping industry grapples with squeezed capacity amid soaring demand and challenges in the Red Sea, major shipping lines are racing to shipbuilding yards to secure newbuilding slots. The latest one to join the trend is the liner giant Mediterranean Shipping Company (MSC) which has signed a contract with China’s Zhoushan Changhong International Shipbuilding Co., Ltd. for the construction of twelve 19,000 TEU LNG-fuelled container ships. The move comes on the heels of previous big contracts with the shipyard: in January 2023, MSC ordered ten 11,500 TEU vessels, and in August 2023, it ordered ten additional LNG-powered giants, each boasting a 10,300 TEU capacity.

The vessels are designed by CIMC’s subsidiary CIMC Ocean Engineering Design and Research Institute (CIMC ORIC). They will feature a twin-island layout, measuring 366 metres in length and 58.8 metres in width, balancing high cargo capacity with low fuel consumption and reduced construction costs. According to CIMC ORIC, the ships will be equipped with advanced energy-saving technologies such as efficient rudders, rudder bulbs, and windshields, as well as high-power shaft generators, shore power systems, and energy efficiency monitoring systems. This will enable the newbuilds to achieve Energy Efficiency Design Index (EEDI) and Carbon Intensity Indicator (CII) levels that are among the leading for their class. The ships will utilise C-type LNG fuel tanks. However, the vessel design also includes provisions for future conversion to ammonia and methanol fuels as these options become more viable. The company has also been linked recently to another order comprising twelve LNG dual-fuelled 21,000 TEU with Jiangsu New Hantong. Alphaliner, a maritime research and data analytics company specialising in container shipping, said that  MSC has added around 400,000 TEU to its fleet so far this year. As a result, the Geneva-based carrier’s share of the operated fleet rose to 19.8% at the end of July, marking the highest-ever figure recorded by a carrier.

Ordering frenzy

The recent ordering frenzy in the container shipping industry has seen a surge of orders, including twelve 15,000 TEU LNG-powered vessels CMA CGM ordered from Hyundai Heavy Industries, as well as ONE’s deal with Jiangnan Shipyard and Yangzijiang Shipbuilding for a total construction of twelve 13,000 TEU methanol dual-fuel container ships.

According to Alphaliner’s data, recent orders for container ships include:

• 6 x 8,400 TEU from Jiangsu New Times Shipbuilding Co. for Capital Ship Management Corp.
• 1 x 8,500 TEU from Yangzijiang Shipbuilding (YZJ) and 5 x 9,200 TEU from Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSIC) for Danaos Shipping Co.
• 8 x 18,000 TEU from NTS for Eastern Pacific Shipping Pte.
• 5 x 16,800 TEU from NTS for SFL Corporation.

Maersk is also joining the wave of new orders as part of its extensive fleet renewal programme, which aims to include up to 60 ships, targeting an annual capacity of 160,000 TEU. The goal is to secure a total dual-fuel capacity of 800,000 TEU, with deliveries anticipated between 2026 and 2030. Maersk plans to incorporate a mix of methanol and LNG dual-fuel propulsion systems, with the intention of operating the LNG-powered ships on liquefied bio-methane (bio-LNG).