Singapore-listed Yangzijiang Shipbuilding is said to have inked its largest single newbuilding contract since it became a public-traded company 16 years ago.
Shipbuilding sources said French liner owner and operator CMA CGM has picked Yangzijiang Shipbuilding to construct a dozen dual-fuel 24,000-teu container ship newbuildings.
The dual-fuel ultra-large container (ULC) ships will be able to run on conventional marine fuel or methanol.
News of CMA CGM planning to order the series of methanol dual-fuel 24,000-teu new ships was first reported in TradeWinds last month. Then, the company was said to be eyeing an order of between five to 10 vessels.
CMA CGM was said to have approached major shipyards in South Korea and China, including Hudong-Zhonghua Shipbuilding (Group), Yangzijiang Shipbuilding, Samsung Heavy Industries, Hyundai Heavy Industries and Hanwha Ocean — formerly Daewoo Shipbuilding & Marine Engineering — for the ultra-large newbuildings.
Sources said SHI and HHI did not bid for the project as they would not be able to optimise their shipbuilding facilities as the 24,000-teu vessels are too large.
Shipyards are trying to build as many vessels as possible in this current hot shipbuilding market. They want to optimise their dry docks’ space and prefer high-value smaller vessels such as the 16,000-teu container ships or LNG carriers.
Sources also believed SHI and HHI knew they could not compete with the Chinese shipbuilders on price. They think SHI and HHI would seek more than $250m each for CMA CGM’s methanol dual-fuel ultra-large newbuildings, while Chinese shipyards would offer at least 10% lower.
Officials at Yangzijiang were uncontactable as China is closed for a public holiday. CMA CGM said it does not comment on market reports.
One market source thinks CMA CGM is paying Yangzijiang between $200m and $250m apiece for the methanol dual-fuel newbuildings. The shipyard will deliver the ultra-large container vessels from 2026 onwards.
If the order of the 12 newbuildings at Yangzijiang is correct, the deal would lift the total number of methanol dual-fuelled container ships that CMA CGM has booked to 36.
Clarksons’ Shipping Intelligence Network (SIN) shows Hyundai Samho Heavy Industries is constructing 12 ships of 13,000 teu for the company, while China’s Jiangnan Shipyard and Dalian Shipbuilding industry is building six vessels of similar size.
CMA CGM is the third liner company to opt for methanol dual-fuel propulsion for ultra-large container ships.
China Cosco Shipping’s Orient Overseas Container Line (OOCL) and Cosco Shipping Lines leapt into methanol fuelling last year.
OOCL ordered seven 24,000-teu ships at Nantong Cosco KHI Ship Engineering for delivery between late 2026 and mid-2028, while Cosco Shipping Lines has five similar size vessels being built at Dalian Cosco KHI Ship Engineering for delivery between February 2027 and June 2028.
OOCL and Cosco Shipping Lines were reported to be paying nearly $240m per boxship.
SIN shows the orderbook for ULCs of 23,000 teu and 24,000 teu stands at 62 units. Twenty-one are LNG dual-fuel vessels, 12 are methanol dual-fuel and the rest are conventionally fuelled and fitted with scrubbers.
Four of the 21 LNG dual-fuel ULCs are CMA CGM’s, ordered at the end of last year at a reported price of at least $250m each.
Hudong-Zhonghua is building the quartet and is scheduled to deliver them in 2025 and 2026.
