French liner company CMA CGM is in talks with CSSC (Hong Kong) Shipping Leasing about an order for 10 containerships worth an estimated $1.2bn, which would be split between two Chinese shipyards.
Newbuilding sources said that under the planned deal with the China State Shipbuilding Corp leasing arm, Jiangnan Shipyard is in the frame to build a clutch of five dual-fuelled 15,000-teu ships against charters with CMA CGM.
Under the plans, each of these ships would be fitted with a 10,000-cbm LNG bunker tank that would give them capacity to make round voyages running on gas as a main fuel.
Similarly, Hudong-Zhonghua Shipbuilding (Group) is poised to win an order for a quintet of sisterships, except that these vessels will be fitted with scrubbers.
TradeWinds understands that newbuilding contracts have yet to be signed on these vessels.
Brokers estimate that the dual-fuelled vessels would be likely priced from around $130m each and upwards, depending on specifications, with the scrubber-fitted ships coming in at $20m to $25m apiece less.
Asked about reports of the order, a CMA CGM spokesman said the company does not comment on market rumours.
The company has been a pioneer on LNG fuelling in the boxship sector.
Bucking the trend
In 2017, the company bucked the trend among other liner giants and signed up to nine ultra large containerships of 22,000 teu, the largest and first to be built with dual-fuel propulsion systems.
These vessels, which are being built at Hudong-Zhonghua and Shanghai Waigaoqiao Shipbuilding, are being fitted with 18,600-cbm, membrane-type LNG bunker tanks. This enables them to take on LNG as bunkers in Rotterdam, Netherlands, and make a 63-day round voyage between Europe and China without the need to refuel.
The first of these newbuildings will deliver in early 2020. MOL is to supply a purpose-built LNG bunker vessel to fuel them and Total will provide the LNG.
Shortly after placing this order, CMA CGM was reported to be in talks with Hyundai Heavy Industries on a similar ground-breaking dual-fuelled haul of up to 12 vessels of 14,000 teu. But no orders materialised.
In the interim, CMA CGM, like other liner companies, has been battling losses and pressing the pause button on newbuilding plans.
However, last year, the company did finalise its takeover of Finnish company Containerships, which netted it six LNG-fuelled newbuildings that deliver into 2021 from Huangpu Wenchong Shipbuilding in China.
But the company has also been seen fixing scrubber-fitted containership tonnage as it gears up its fleet to meet the IMO’s incoming tougher sulphur emissions standards from 1 January 2020.
Most recently, CMA CGM has signed up to charter in five 15,000-teu newbuildings contracted by Eastern Pacific Shipping at Hyundai Samho Heavy Industries. It already has two vessels on charter from the Idan Ofer-led company.
Eastern Pacific is also building dual-fuel vessels of the same size at the yard, and the French company is named as being among those considering these ships for charter.
Ian Lewis contributed to this article
