Wan Hai Lines, which registered a huge improvement in profit for the first half of this year, is splashing out about $2bn on new dual-fuel container ships.
In a deal that marks the first time the company has ordered new ships with dual-propulsion engine vessels, the Taiwanese liner company has chosen methanol as the fuel.
Its decision has surprised some shipbuilding observers as other major shipowners, most notably pioneer AP Moller-Maersk, are turning to LNG and other options.
Wan Hai told investors today that it is ordering up to 20 neo-panamax container ships at two shipyards.
In a regulatory filing, the liner giant said it has penned provisional newbuildings contracts with domestic shipbuilder CSBC and South Korea’s Hyundai Samho Heavy Industries.
CSBC has secured the bulk of the order, with 12 firm vessels plus an option for an additional four. Hyundai Samho is contracted to build four newbuildings.
The container ships at Hyundai Samho are of 8,700 teu, while the series at CSBC are 8,000 teu.
The cost of CSBC’s boxships is about 5% lower, with Wan Hai revealing they are priced between $102.5m and $124m each. The slightly larger ships at Hyundai Samho cost between $113.5m and $130.41m per vessel.
Wan Hai added that the cost of the newbuildings includes upgrades to the equipment on the vessels.
Wan Hai did not disclose the motivation behind the order and the delivery schedule.
TradeWinds has learned that Hyundai Samho is slated to deliver the quartet in 2026 and CSBC is scheduled to deliver the firm 12 ships between 2026 and 2027.
One shipbuilding player said there is a big price gap between LNG and methanol fuel systems as the latter is less costly and easier for shipyards and seafarers to handle and operate.
On Monday, Wan Hai announced its second-quarter results. The company said its total revenue amounted to TWD 38.2bn ($1.18bn), an increase of 56% compared with the same period of 2023.
For the first half of 2024, it logged an operating and net profit of TWD 13.1bn and TWD 16.2bn, respectively, compared with losses of TWD 2.4bn and TWD 4.4bn in the first six months of last year.
