Hapag-Lloyd, the world’s fifth-largest shipping company, is reportedly in the final stages of reviewing an order for six LNG dual-fuel container carriers from South Korea’s Hanwha Ocean. The contract, estimated to be worth $1.2 billion (1.7 trillion won), marks a potential shift in Hapag-Lloyd’s strategic partnerships, as the company had previously engaged with China’s Yangzijiang Shipbuilding for similar vessels.
The potential deal with Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering, comes after a letter of intent was signed in 2021 for the construction of six vessels. At that time, the price per ship was over $200 million, with deliveries scheduled from the end of 2027. However, the contract did not proceed to the construction phase. In October of last year, Hapag-Lloyd opted to sign a construction contract with Yangzijiang Shipbuilding for twelve 16,800 TEU LNG dual-fuel container ships, priced at $210 million each, with a delivery timeline from 2027 to 2029, and an option for an additional six vessels.
TradeWinds, a leading publication in the shipping industry, has reported that Hapag-Lloyd is now finalizing an order for six 16,800 TEU LNG dual-fuel container ships from Hanwha Ocean. The decision to switch from the Chinese shipbuilder to Hanwha Ocean is attributed to a relatively lower price and the possibility of securing delivery by 2027, according to TradeWinds’ analysis.
Despite these reports, Hanwha Ocean has remained cautious, stating, “Nothing has been confirmed,” regarding the construction contract with Hapag-Lloyd. This statement reflects the tentative nature of negotiations in the shipbuilding industry, where multiple factors, including economic conditions and geopolitical considerations, can influence final decisions.
The adoption of LNG dual-fuel technology is a critical aspect of this potential deal. LNG is considered a cleaner alternative to traditional marine fuels, significantly reducing emissions of sulfur oxides, nitrogen oxides, and particulate matter. This aligns with the shipping industry’s efforts to comply with international environmental regulations, such as the International Maritime Organization’s 2020 sulfur cap and its goals for reducing greenhouse gas emissions.
In a related development, industry sources indicate that Taiwanese shipping company Evergreen is also pursuing a construction contract with Hanwha Ocean. This involves eleven 24,000 TEU LNG dual-fuel container ships, each valued at $250 million. Evergreen’s interest underscores the industry’s shift towards larger, more efficient, and environmentally friendly vessels.
Source: Business Korea
