The CMA CGM Group announced a new order for 16 vessels, including 10 dual fuel LNG-powered and six dual fuel methanol-powered vessels, bringing its orderbook to 69 vessels.
The announcement was made as the group issued its financial statements for the first quarter of 2022. The six new 15,000 TEU methanol-powered vessels will join the CMA CGM Group fleet by the end of 2025.
The order fits with CMA CGM’s strategy to expand its energy mix with the goal of achieving net zero carbon by 2050 – a task it says involves investing massively in gas and methanol fuels. “The two sectors will be complementary for decarbonising shipping industry in the years to come.”
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “During the first quarter, our Group accelerated the deployment of its strategy to become a world leader in integrated logistics. We have also taken further steps in our energy transition by forging innovative partnerships to develop low-carbon fuels and by deciding to diversify the energy sources for our future vessels.”
In 2017, CMA CGM chose to invest in dual-fuel vessels that currently run on LNG, to almost fully reduce atmospheric pollutant emissions. This represented the first step in reducing greenhouse gas emissions. The engine installed on these vessels is already compatible with BioLNG derived from biomethane (- 67% in CO₂ emissions) or synthetic methane (including e-methane). The CMA CGM Group’s “e-methane ready” fleet currently counts 29 vessels in service and will have a total of 77 by 2026.
To support the growth of its e-methane ready fleet, the Group is developing its LNG bunkering port infrastructures. In January 2022, CMA CGM completed the first ship-to-containership LNG bunkering operation in the Port of Marseille Fos, and in March 2022 in the Port of Shanghai. By partnering with the Jupiter 1000 project, France’s first industrial demonstrator of hydrogen and e-methane production, in Fos-sur-Mer, the group aims to further accelerate the growth of the synthetic methane production segment, providing a low-carbon fuel for its vessels.
The group has also launched a biofuel bunkering trial, from used cooking oil, in Singapore.
The Group has continued to invest in its shipping, port, logistics and air freight network this year. During the quarter, three new 15,000 TEU vessels and five new 15,000 TEU chartered vessels were added to the Group’s fleet. CMA CGM has also acquired 26 second-hand vessels since 1 January.
CMA CGM notes that the current operating environment is affected by port and inland congestions, as well as scarcity of assets. This has resulted in a marked increase in operating expenses, in particular vessel chartering costs, additional port handling costs, and labour costs for logistics activities. Moreover, the recent deterioration of the geopolitical situation has triggered major energy price increases which have led to a 46% rise in bunker costs between the first quarter of 2021 and the first quarter of 2022.
