Global shipping giants MSC and CMA CGM are reportedly considering significant investments in new “feeder” container ships, valued at billions of dollars. This potential influx of orders could offer a crucial opportunity for domestic shipbuilders, who have seen a notable decline in orders this year.
Potential for Large-Scale Feeder Newbuilds
According to foreign media reports from July 25, MSC, the world’s largest shipping company by capacity, and CMA CGM, the third largest, are evaluating new orders to replace their existing fleets of feeder container ships. These vessels are typically smaller, below 6,000 TEU (Twenty-foot Equivalent Units). Norway’s TradeWinds estimates that approximately 120 vessels would be needed to replace their combined feeder fleets.
Considering the average newbuild price for ships under 6,000 TEU is reported to be $45 million (approximately 62.1 billion South Korean Won), an order for 120 such ships could amount to a staggering 7.5 trillion South Korean Won.
Driving Force: Environmental Regulations
The primary motivation behind this potential fleet replacement is evolving environmental regulations. The Baltic and International Maritime Council (BIMCO) highlights that while the average age of all container ships is 14.2 years, a significant 92% of vessels over 20 years old are small to medium-sized (below 5,999 TEU). These older, smaller vessels are increasingly inefficient and contribute more to emissions.
Key regulations driving this change include:
- EU Carbon Emissions Trading System (ETS): Implemented since 2024, this system requires vessels over 5,000 gross tonnage (GT) entering and exiting European ports to purchase emissions allowances based on their carbon output. The compliance obligation phases in, starting with 40% of verified emissions for 2024, 70% for 2025, and 100% from 2026 onwards.
- IMO Carbon Tax: The International Maritime Organization (IMO) plans to set mandatory greenhouse gas (GHG) fuel intensity standards for large ocean-going vessels over 5,000 GT. Starting in 2027, ships exceeding these emission limits will be required to pay fees, potentially up to $380 per ton for emissions exceeding the set limit. This framework, formally adopted by IMO in April 2025, aims for net-zero emissions from the sector by 2050.
Opportunity for Domestic Shipbuilders
Domestic shipbuilders have traditionally focused on high-value vessel orders. However, the first half of 2025 has seen a sharp decline in global ship orders, with the total volume reaching 19.38 million CGT (Compensated Gross Tonnage), a 54.4% decrease compared to the same period last year.
Specifically for container ships under 8,000 TEU, Clarkson Research reported that domestic shipbuilders delivered only 14 vessels in the first half of 2025, representing a 63% decrease compared to the same period last year. Their share in the total number of container ships delivered in this size category also fell significantly by 22.4 percentage points to 31.1%.
A large volume of feeder ship orders from MSC and CMA CGM would therefore provide a much-needed boost, helping to secure work for domestic shipyards amidst the current downturn in new orders.
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Source: Chosun
