This year, a clear trend has emerged in the newbuilding market for container ships: an increase in orders for small and medium-sized vessels. Recently, several liner companies have announced orders for feeder container ships. Particularly as leading companies in the industry show more enthusiasm for ordering this type of vessel, the market may experience a peak. At the same time, Chinese shipyards are also expected to win more orders.
Increase in “Smaller-Scale” Orders
Not long ago, market reports indicated that Mediterranean Shipping Company (MSC) and CMA CGM Group are interested in ordering a large number of feeder container ships. It is reported that these two liner companies are conducting in-depth evaluations of various ship types. MSC’s planned newbuilding project intends to order 100-120 container ships ranging from 1100 TEU to 5000 TEU. While the specific number required by CMA CGM Group is currently unclear, given the current transportation patterns, its shift from ordering large container ships to feeder vessels is entirely consistent with the logic of fleet renewal and shipping alliance operations.
These rumors are not without basis. The ship brokerage Braemar mentioned in a container shipping market report: “Judging from MSC’s fleet composition, these orders are likely primarily for replacing older vessels. The average age of the company’s own feeder ships has already reached 22 years, and by the time the new ships are delivered, the average age of these older ships will exceed 25 years.” Another shipbuilding industry source confirmed that CMA CGM Group indeed has the intention to build new feeder container ships, although the fuel choice for the new ships has not been finalized. Meanwhile, CMA CGM Group will also expand its feeder capacity through non-owned methods, with leasing the series of feeder ships built by the Greek shipping company Capital Maritime & Trading at HD Hyundai Mipo Dockyard, which feature LNG-ready designs, being one of the options. Previously, Capital Maritime & Trading ordered 8 x 2800 TEU ships and 6 x 1800 TEU ships at HD Hyundai Mipo Dockyard, expected to be delivered between 2026 and 2027.
In fact, after large container ships and ultra-large container ships dominated the market for 10 years, the renewed focus of liner companies on small and medium-sized container ships is significant. For carriers, expanding feeder ship capacity will enable them to tighten operations and increase call frequency at secondary ports, thereby alleviating port congestion during transshipment. For shippers, the involvement of more feeder capacity will translate into higher liner schedule reliability, better port connectivity, and the opportunity for them to choose transportation combinations with lower emissions, which is also one of the most valuable links in the logistics industry.
Route networks aimed at meeting decarbonization goals and reliability requirements will also develop. When trunk line transportation served by ultra-large vessels is combined with more resilient feeder transportation, operators can make flexible adjustments to capacity in response to regulatory and market changes. Simultaneously, the increase in orders for small and medium-sized ships has a clear impact on the broader industry, such as boosting market demand for leasing modern dual-fuel ships, accelerating the phase-out of older feeder ships, and, as orders are no longer predominantly focused on large vessels, shipyards will offer more diversified products to shipowners.
Some analysis institutions point out that the new ship orders from MSC and CMA CGM Group are likely to be concentrated in China. It is an indisputable fact that Chinese shipyards are more competitive in the market and have greater production capacity. Furthermore, due to the decline in bulk carrier demand, some shipyards hoping to diversify their ship type portfolios are actively pursuing such orders.
Recently, Chinese shipyards have frequently received orders for feeder container ships.
In July, the Korean liner company CK Line signed a contract with Yangzijiang Shipbuilding Group for 2+2 1100 TEU feeder container ships. Excluding this order, all publicly announced container ship orders for Yangzijiang Shipbuilding this year are concentrated in the feeder ship sector, including 2+2 4400 TEU container ships from Regional Container Lines (RCL), and a 2+2 3000 TEU container ship order signed with Hai An Transport & Stevedoring Joint Stock Company (HAIANTS).
After placing its first feeder container ship order in 4 years – signing a contract with a Chinese shipyard for 6 x 1800 TEU container ships – Eastern Pacific Shipping (EPS) continued to expand its presence in the feeder transport market at Fujian Mawei Shipbuilding Co., Ltd., with 12+6 1800 TEU container ships scheduled for delivery starting in 2028. It is reported that while the aforementioned 6 ships are expected to use conventional fuel, they are prepared for potential retrofitting to LNG or methanol dual-fuel. The fuel type for the 1800 TEU ships built by Mawei Shipbuilding has not been disclosed, but given that their potential charterer is CMA CGM Group, they will also incorporate more environmental technologies to ensure their economic efficiency and future compliance.
Greek shipowner Costamare, returning to the newbuilding market, will order 4 x 3100 TEU container ships. Greek media reported that the shipbuilder is Zhoushan Changhong International Ship Repair & Building Co., Ltd.. The first order for Greek bulk owner W Marine entering the container ship sector was secured by Huanghai Shipbuilding Co., Ltd., with a contract signed for 2+2 1800 TEU container ships. Additionally, Huanghai Shipbuilding will build 2+6 2800 TEU container ships for the Dutch owner Seatrade. As feeder container ships gradually become the focus of the newbuilding market, Chinese shipyards have become the preferred choice for shipowners in this wave of orders. The German owner Hartmann Group also recently returned to Taizhou Sanfu Ship Engineering Co., Ltd. to place an additional order for 1 x LNG dual-fuel 3500 TEU container ship.
Large Ship Orders Show “Gas”
Following MSC and CMA CGM Group placing significant new orders, Maersk also plans to order a batch of LNG dual-fuel container ships. It is reported that Maersk may order up to 12 LNG dual-fuel 18000 TEU dual-fuel container ships. This is a continuation of Maersk’s strategy to diversify its fuel portfolio, despite being a strong advocate for methanol fuel. Last year, Maersk ordered the first batch of 20 LNG dual-fuel container ships for its own fleet, including 6+4 15000 TEU ships ordered at Hanwha Ocean, and 6+4 sister ships ordered at Jiangsu New Times Shipbuilding Co., Ltd.. Maersk also signed contracts with Yangzijiang Shipbuilding for 2 x 9000 TEU ships and 6 x 17000 TEU ships. Due to changes in current shipping alliance operational models, these new ships with capacities under 20,000 TEU offer greater deployment flexibility and can certainly be used on the Far East-Northwest Europe route.
MSC has again demonstrated its strong demand for new large LNG dual-fuel container ships.
In February this year, MSC signed an order with Changhong International for 4 LNG dual-fuel 21700 TEU container ships. In June, the two parties signed another contract for 4 sister ships. In July, MSC continued to place additional orders at Changhong International for 2 more sister ships. In the same month, MSC confirmed an order at Hengli Heavy Industry Group Co., Ltd. for 2 LNG dual-fuel 22000 TEU container ships. This ship type features extremely high loading capacity and an advanced intelligent management system, with a tentative delivery date set for 2029. These 2 container ships are a follow-up to the previous batch of ultra-large container ships undertaken by Hengli Heavy Industry. Combined with the 6 sister ships ordered in April this year, the total number of LNG dual-fuel 22000 TEU container ships jointly built by the two parties has reached 8. MSC also has orders for 4 LNG dual-fuel 21000 TEU ships at Shanghai Waigaoqiao Shipbuilding Co., Ltd., and orders for 3 LNG dual-fuel 21000 TEU container ships each at Hantong Ship Heavy Industry and China Merchants Heavy Industry (Jiangsu) Co., Ltd..
According to Clarksons statistics, since last year, the number of large and ultra-large container ships ordered by MSC at Chinese shipyards has reached 86, all of which are LNG dual-fuel ships, with 74 being ultra-large container ships with capacities over 20,000 TEU. In April this year, Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. delivered the world’s first LNG dual-fuel 24000 TEU container ship, the “CMA CGM SEINE”, for CMA CGM Group. This series comprises 4 ships, with an overall length of 399 meters, a molded breadth of 61.3 meters, and a molded depth of 33.5 meters, capable of stacking containers up to 24 tiers high. Compared to the LNG dual-fuel 23000 TEU container ships previously built by Hudong-Zhonghua for CMA CGM Group, the “CMA CGM SEINE” and its sister ships have further improved loading capacity and reduced oil and gas consumption through reasonable distribution of stack weights. At the Normal Continuous Rating (NCR) of the main engine, fuel consumption decreased from 239.1 /day to 231.4 /day, and gas consumption decreased from 193.2 /day to 182.8 /day. The Energy Efficiency Design Index (EEDI) meets the Phase III requirements of international regulations ahead of schedule. Additionally, this series of ships is equipped with a cargo hold flooding alarm system in the cargo holds to ensure cargo transport safety. The deck is equipped with mobile water monitors, and extra-long water monitors are added on top of the engine casing and superstructure. The cargo holds are equipped with water flooding and water spray systems, providing comprehensive fire risk response. Regarding cabin layout optimization, all cabins use high-sound-insulation doors and high-sound-insulation flooring for noise reduction, creating a more comfortable living space for the crew.
In the first quarter of this year, CMA CGM Group signed two new large container ship construction contracts. First, at HD Korea Shipbuilding & Offshore Engineering (HD
KSOE placed an order for 12 LNG dual-fuel 18,000 TEU vessels, and subsequently ordered 8+4 LNG dual-fuel vessels of the same scale at Jiangnan Shipbuilding (Group) Co., Ltd. (hereinafter referred to as Jiangnan Shipbuilding). It is reported that this ship type is a large container ship that complies with the latest international green energy container ship design concepts, is completely independently researched, developed, and designed by Jiangnan Shipbuilding, and meets the latest rules and regulations. It features reliability, energy saving, and environmental protection, with comprehensive performance indicators reaching international advanced levels. Other reports indicate that CMA CGM Group is also planning to order up to 12 21,000 TEU-24,000 TEU container ships, which also marks the company’s first order for ultra-large container ships over 20,000 TEU in two years.
Liner companies’ enthusiasm for ordering large LNG dual-fuel container ships continues to heat up. For example, Japan’s Ocean Network Express (ONE) ordered 8+4 LNG dual-fuel 16,000 TEU container ships at HD Hyundai Heavy Industries. Evergreen Marine ordered a total of 11 LNG dual-fuel 24,000 TEU container ships at Guangzhou Shipbuilding International Co., Ltd. (hereinafter referred to as GSIC) and Hanwha Ocean earlier this year. Recently, news emerged that the company will also order 12-14 LNG dual-fuel 14,000 TEU container ships.
An Unshakable Main Theme
Container shipping market research institution Linerlytica stated in its latest report that the current global shipyard orderbook for container ships has reached 10.4 million TEU, a historical high. The orderbook as a proportion of the existing fleet has risen to 31.7%, the highest level since 2010. Although this figure differs from Clarksons’ statistics of a 9.87 million TEU orderbook, it does not hinder the reflection of strong market demand for new capacity when the orderbook is pushed to a historical high.
According to Clarksons statistics, although the overall global newbuilding market orders in the first half of the year declined compared to the same period in 2024, new orders for container ships maintained strong growth. During the statistical period, new orders for container ships reached 201 ships, approximately 1.92 million TEU, which is twice the average value of the past decade. Among these, Chinese shipyards dominated the container ship construction market, receiving a total of 134 orders, approximately 1.17 million TEU, accounting for about 61% of the market share by TEU.
Among the top 10 individual shipyards globally by container ship orderbook, seven are from China. These are New Times Shipbuilding (73 /3.9 million CGT) ranked 1st to 3rd, New Yangzi Shipbuilding Co., Ltd. (72 /3.4 million CGT), and Changhong International (50 /3.0 million CGT). Ranked 5th to 7th are Waigaoqiao Shipbuilding (42 /2.2 million CGT), Hengli Shipbuilding (Dalian) Co., Ltd. (28 /2.2 million CGT), and Yangzi Xinfu Shipbuilding Co., Ltd. (30 /2.2 million CGT). Jiangnan Shipbuilding ranks 9th with an orderbook of 31 /2.0 million CGT. The contribution of Chinese shipyards with production capacity and technological advantages in the field of container ship construction is self-evident. Among them, the private shipbuilding enterprises on the list continue to write their own legends with new products.
New Times Shipbuilding had received batch container ship orders during 2021-2022. Afterwards, as the wave of container ship orders subsided and the company shifted its order focus, it paid more attention to the tanker construction sector. It was not until the second half of last year that New Times Shipbuilding returned to the container ship construction market, successively receiving over 60 container ship orders from various parties, all of which can use LNG as fuel.
To become the first private shipbuilding enterprise in China to integrate the R&D, manufacturing, and practical ship application of LNG fuel tanks, New Times Shipbuilding initiated key technology research for an 8,000 cubic meter self-supporting prismatic LNG fuel tank in 2022. It focused on solving key technical difficulties such as the lightweight structural design of the Type B fuel tank, load analysis, fatigue calculation, and crack propagation analysis, aiming to break through the bottleneck issues in the design and manufacturing of Type B fuel tanks. In July 2023, the construction of New Times Shipbuilding’s first 8,000 cubic meter Type B LNG fuel tank officially began, marking a substantive step in the company’s independent design and construction of Type B LNG fuel tank projects and a new breakthrough in the field of LNG fuel tanks. On May 12, New Times Shipbuilding delivered its first LNG dual-fuel 11,400 TEU container ship to MSC. This ship is the first of a series of 10 ships ordered by MSC, with a total length of 335 meters, a width of 45.6 meters, and a depth of 25 meters, equipped with a MAN B&W 6G90ME-C10.5-GI EcoEGR Gas Std. type main engine.
On April 30, New Yangzi Shipbuilding delivered its first LNG dual-fuel 8,200 TEU container ship, the “KOTA OASIS”, built for Pacific International Lines (PIL). This ship is the first of four “O-class” LNG dual-fuel 8,200 TEU container ships, jointly developed by the Shanghai Merchant Ship Design and Research Institute and New Yangzi Shipbuilding. The ship has a total length of 260 meters and can handle both feeder and ocean transportation tasks. More importantly, the “KOTA OASIS” is also the first ship type in the history of Yangzijiang Shipbuilding’s container ship construction to be equipped with a GTT membrane tank. This first cooperation between a domestic private shipbuilding enterprise and GTT also signifies that Chinese private shipbuilding technology has entered the world’s first tier. The ship is equipped with an LNG dual-fuel gas supply system provided by Wärtsilä, meeting the world’s most stringent emission requirements, with EEDI meeting Phase III requirements in advance. The main engine is equipped with an advanced intelligent control exhaust gas recirculation (iCER) system, which not only ensures the fuel oil mode meets Tier III emission requirements but also reduces methane slip in LNG mode, thereby reducing greenhouse gas emissions. The generator is equipped with a selective catalytic reduction (SCR) system, also meeting the IMO’s nitrogen oxide emission requirements.
The “MSC SAVANNAH” is the 8th LNG dual-fuel 16,000 TEU container ship built by Yangzi Xinfu for Doun Kisen, and was delivered on July 15. This batch of LNG dual-fuel 16,000 TEU container ships, chartered by MSC, totals 12 ships, with a total length of 366 meters, a width of 51 meters, and a depth of 30.2 meters. They are equipped with energy-saving devices such as shaft generators and air lubrication systems. The dual-fuel main engine adopts the ECOEGR optimization method, which can effectively reduce fuel consumption while meeting Tier III emission standards.
