- Order placed at Korean ship yard Daewoo Shipbuilding & Marine Engineering.
- Vessels will be powered by LNG Dual Fuel.
- Delivery starts in April 2023.
- 1 billion USD investment.
German liner giant Hapag-Lloyd has ordered six ultra-large container vessels from Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME), reads a press release from the company.
Sustainability strategy
The carrier said the vessels will significantly increase its competitiveness and will be a core part of its sustainability strategy. The vessels will be fitted with a state-of-the-art high pressure dual fuel engine, which the carrier said will be extremely fuel efficient, and will operate on liquified natural gas (LNG).
The $1 billion investment will see the LNG-powered 23,500+ TEU vessels delivered to Hapag-Lloyd between April and December 2023.
Fuel efficient engines
The vessels will be fitted with fuel-efficient high-pressure dual-fuel engines, that will operate on LNG, but they will have alternatively sufficient tank capacity to operate on conventional fuel, the company said.
Hapag-Lloyd added that the financing for the massive investment has already been secured.
Rolf Habben Jansen, CEO of Hapag-Lloyd said: “With the investment in six ultra large container vessels we will not only be able to reduce slot costs and improve our competitiveness on the Europe – Far East trade, but also take a significant step forward in modernizing our fleet. Additionally we will further reduce our environmental impact.”
The announcement is another sign of the recovery of the container shipping sector following the COVID-19 pandemic. Most of the major carriers have seen profits increase in 2020, particularly in the final six months.
Freight rates climb high
Blank sailings have pushed up freight rates and the plunging price of oil has made fuel cheap. These factors have combined with a surge in exports from China, which has increased demand for vessel space.
Hapag-Lloyd saw its earnings before interest, taxes, depreciation and amortisation (EBITDA) increase by more than 20% in the first nine months of 2020. It is also further proof of the growing popularity of the new class of mega-ships with capacities of 23,000 TEU vessels or more.
Hapag-Lloyd cancelled a previous mega-ship order in April due to uncertainty caused by the COVID-19 pandemic. In making this order, Hapag-Lloyd has joined HMM, MSC and CMA CGM in increasing its vessel capacity.
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Source: Hapag Lloyd
