Shipyards in South Korea, China and Japan are basking in a wave of fresh enquiries for containership newbuildings and are advancing projects for more than 80 vessels in total.

Brokers and yards are detailing new business that could result in orders for up to 30 ultra-large containerships of around 23,000 teu.

Japan’s Ocean Network Express, German owner Hapag-Lloyd and Mediterranean Shipping Co are understood to have signed firm or initial contracts on tonnage for this size of vessel.

Separately, a raft of enquiries for neo-panamaxes has emerged from Chinese, Taiwanese and European owners, which stacks up to more than 50 ships.

Long list

While there is overlap in some of this business, in that certain enquiries are for tonnage required by charterers that may also be in the market for vessels at the same time, brokers described the level of interest as intense.

Those watching the potential for orders list China’s Cosco, Taiwan’s Wan Hai Lines, CMA CGM of France, Israeli liner operator Zim, Capital Maritime & Trading of Greece and the embryonic Clean Carriers as among those speaking with yards either on orders or vessel specifications.

On top of these, Taiwanese owner Evergreen Marine, which TradeWinds has previously reported as being in the market for six firm ships of around 15,000 teu, has issued a formal request for quotes to yards for up to 20 vessels.

Mystery mini-project

An Evergreen executive said the company continues to study various types of vessels and will place orders or charter the most suitable ships depending on the market requirement.

“Evergreen is continuing with [its] fleet-renewal programme for the purpose of optimising service quality and competitiveness,” the executive said.

Outside these larger size ranges, brokers list a new mystery project with up to 10 containerships of around 5,500 teu that is being discussed with Chinese shipbuilders under the code name “Project Slade”.

The market is firm, prospects are good and the fleet is old

Newbuilding broker

The bulk of shipowners appear to be opting for conventionally fuelled vessels.

One exception is CMA CGM, which has just taken delivery of the second of nine dual-fuel ultra-large containerships into operation after bunkering its first with LNG. Hapag-­Lloyd, Zim and Clean ­Carriers are also understood to be choosing the LNG-fuelled route.

The late upswell in boxship enquiries and incoming new orders comes after a dire year for shipbuilders. In September, Clarksons Research said the global ­newbuilding orderbook was at its lowest point in 30 years.

Despite the high volume of new business, few newbuilding market players think it will raise prices.

Brokers quoted levels for 23,000-teu ships at close to $142m, with neo-panamax vessels coming in at $105m to $108m, with premiums for dual-fuelled ships.

They said there is a feeling that prices have reached a floor and that this is the time to move, with yards hungry for new business.

In turn, shipbuilders speak of rising steel prices and currency concerns, which will affect the profit margins on their deals.

There are a number of reasons behind the rush of containership interest at yards.

Those watching the sector pointed to a buoyant boxship market, which has rebounded on the back of demand for consumer goods rather than services during the Covid-19 pandemic.

“Liner has underscored its essential service,” the head of one broking house said.

Observers also stressed how lines had kept capa­city tight, shedding vessels without replacing them on trades.

“Container shipping is 10 years behind where it should be on technology and five years behind on fleet replacement,” another said.

Summing up the drivers, one newbuilding broker commented: “The market is firm, prospects are good and the fleet is old.”

Brokers said shipyards will probably prefer to fill their dock space with high-value containerships rather than cheaper tankers.

The newbuilding enquiries have improved the mood among marketing teams at South Korea’s big three shipbuilders — Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering — which, for most of this year, have been struggling to meet order targets.

Several brokers spoke about yard executives sounding more relaxed since South Korea’s Chuseok holiday period from the end of September into early October, as the new boxship enquiries began to emerge.

“The level of anxiety has definitely receded,” one broker said.