After more than two years, Nantong CIMC Sinopacific Offshore & Engineering (SOE), which focuses on the LNG carrier market, has once again received an order for feeder container ships.
Recently, the US-listed Greek shipowner Danaos announced an order for six 1800 TEU feeder container ships. The new ships are expected to be delivered between 2027 and 2029. The shipyard name and specific price were not disclosed. However, according to Clarksons data, this order was received by CIMC SOE.
For reference, Clarksons data shows that the current newbuilding price for an 1800-2100 TEU container ship is approximately $32 million (about RMB 227 million), a slight decrease compared to $32.25 million during the same period last year.
Danaos has already secured 10-year charter contracts for four of these new ships, with a total value of approximately $236 million (about RMB 1.676 billion), which basically covers the entire construction cost.
Danaos did not disclose the charterer information. It is understood that the company’s current largest customer is Germany’s Hapag-Lloyd, contributing 19% of Danaos’s total signed charter revenue of $4.1 billion through 2038; followed by Mediterranean Shipping Company (MSC), Pacific International Lines (PIL), and France’s CMA CGM, each accounting for 17%-18%.
Including the latest order, Danaos’s current newbuild portfolio has increased to 23 ships, of which 21 have secured charter contracts with an average charter period of 5.8 years, generating total charter revenue of $4.1 billion.
John Coustas, CEO of Danaos, stated that the company has selectively expanded its newbuilding program at prices below the market rate. He is optimistic about the container ship market in the coming years, noting: “Demand for medium and large-sized vessels remains strong, and we have even secured new charters for ships delivering as early as the beginning of 2028. Delivery slots for 2028 are becoming increasingly scarce, and newbuilding prices continue to rise.”
It is understood that Danaos is currently one of the world’s largest independent owners of container ships, operating a fleet of 75 container ships ranging from 2200 TEU to 13100 TEU, with a total capacity of 477,491 TEU. It has long-term charter contracts with several leading container shipping companies. Additionally, the company owns 11 Capesize bulk carriers with a total deadweight tonnage of 1.94 million tons. All of the company’s 23 current newbuild container ships are being built by Chinese shipyards. Besides the latest 6 ships from CIMC SOE, these include 7 x 8258 TEU container ships from Yangzijiang Shipbuilding, 5 x 9200 TEU and 2 x 7165 TEU container ships from Shanhaiguan Shipbuilding (SHSIC), 2 x 9200 TEU container ships from Huangpu Wenchong Shipbuilding, and 1 x 6014 TEU container ship from China Merchants Industry (Qingdao). All new ships are expected to be delivered and enter operation successively before 2028.
For CIMC SOE, the latest order from Danaos marks its “return” to the container ship construction sector. It is understood that CIMC SOE’s last container ship order was in June 2023, when German owner Hartmann Schiffahrts ordered two 1450 TEU dual-fuel LNG-powered ships. This was also CIMC SOE’s first container ship order; the new ships were delivered and entered operation in July and September of this year.
CIMC SOE is a leading enterprise in the niche markets of small and medium-sized liquefied gas carriers and LNG bunkering vessels. Focusing on the liquefied gas carrier field for 16 years, it possesses independent capabilities in the design, construction, and project management of marine liquid tanks, fuel tanks, and entire ships. It has delivered over 40 various liquefied gas carriers, including the world’s largest newly built 20,000 cubic meter LNG bunkering vessel and the world’s first 5,000 cubic meter dual-fuel fully refrigerated LPG carrier, ranking among the top in global market share.
According to Clarksons data, including the latest order, CIMC SOE’s current orderbook totals 46 ships with 748,300 deadweight tons. This includes 17 LNG bunkering vessels, 12 LPG carriers, 6 offshore vessels, 6 container ships, 2 general cargo ships, 2 tugboats, and 1 bulk carrier, with delivery schedules extending until 2029.
