Japan’s Imabari Shipbuilding is poised to seal its first LNG dual-fuel ultra-large container ship order at a record price for the sector.

The Higaki family-controlled shipyard is lining up contracts for a total of four 23,000-teu newbuildings at between $255m and $260m per ship.

By comparison, shipyards are said to be seeking about $235m for 175,000-cbm LNG carrier newbuildings, which are typically the most expensive ship type to contract.

According to shipbuilding sources, the boxship contract will be placed by three Ehime-based domestic owners.

Doun Kisen is said to be signing up for two vessels, while Nissen Kaiun and Shoei Kisen will book one ship each. Shoei Kisen is the shipowning arm of Imabari.

According to sources, the three Japanese tonnage suppliers are ordering the ultra-large boxships on the back of charter contracts from Mediterranean Shipping Co (MSC).

An executive at Imabari said he is not aware of the newbuilding contracts, while Doun Kisen and Nissen Kaiun do not comment on market talk. MSC declined to comment when contacted by TradeWinds.

Shipbuilding observers believe the three Japanese owners would have received a cheaper deal had they ordered the vessels at yards in South Korea or China, which are seeking around $250m per ship.

Others believe Doun Kisen, Nissen Kaiun and Shoei Kisen have chosen to have the container ships built at Imabari to support domestic shipyards.

They added that the owners are also looking to reinvest the profits they made in the last fiscal year in the booming container ship markets, rather than the dry bulk sector where they have traditionally spent their cash.

Record price

The shipbuilding price of between $255m and $260m apiece for the four boxships would set a new record price for ultra-large container ships.

The last comparable deal for this ship type was in June last year, when Hapag-Lloyd contracted Daewoo Shipbuilding & Marine Engineering to build six vessels at a reported price of about $165m each.

Strong demand for container ship newbuildings, rising material costs and the recently cash-rich liner companies were cited as reasons for the skyrocketing prices.

Imabari is not a newcomer when it comes to building ultra-large container ships. According to VesselsValue, it has 13 conventionally fuelled newbuildings of between 20,150 teu and 24,000 teu on its orderbook to be delivered by the end of 2023. It has also delivered 13 vessels of 20,000 teu between 2017 and 2019.

The four newbuildings from the three local owners will be the first LNG dual-fuel ultra-large container ship contract for the Ehime-based shipyard.

Shipbuilding sources think Imabari will be using GTT Mark III Flex membrane containment systems for the container ships.