Wan Hai Lines is pushing ahead with a major fleet renewal program, signing a newbuilding contract worth up to US$980 million for eight eco-friendly containerships at Shanghai Waigaoqiao Shipbuilding (SWS), a subsidiary of China State Shipbuilding Corporation (CSSC).
The order forms part of the Taiwanese carrier’s fleet modernization program and is designed to enhance its access to propulsion technologies to help the shipping industry transition to lower-emission operations.
The contract is for one methanol-ready 9,200-TEU container vessel and seven larger 11,000-TEU vessels that can operate on methanol or liquefied natural gas (LNG).
The 9,200-TEU vessel will be methanol dual-fuel ready, priced at between $102 million and $112 million.
The seven 11,000-TEU vessels will offer enhanced fuel flexibility with dual-fuel capability for both methanol and LNG. Each ship costs between $118 million and $124 million.
The deal, with a maximum value of $980 million, is a big bet on the future fleet of Wan Hai, which comes as container carriers face increasing pressure to prepare for stricter environmental regulations.
Increased flexibility for alternative fuels
The combination of methanol-ready and methanol-LNG dual fuel vessels will give Wan Hai further flexibility as alternative marine fuels develop.
Availability of fuel, costs and regulatory requirements are still key factors for shipping companies when deciding on fleet modernizations. Wan Hai is investing in ships that can run on different kinds of fuel so it can adjust to fluctuating conditions.
The order also reflects a wider move across container shipping, with carriers increasingly looking to newbuildings built around alternative-fuel technologies.
For Wan Hai, the latest investment is a mix of adding container capacity and a longer-term effort to build a fleet better suited to the industry’s transition to lower-carbon maritime transport.
