Cido Shipping has ordered two LNG dual-fuelled neo-panamax boxships at Hyundai Heavy Industries against charters with Mediterranean Shipping Co (MSC), as the liner giant firms up fuelling switches for other containership newbuildings it has on order in China.
Sources following the order said South Korean-owned, Hong Kong-based Cido contracted two dual-fuelled, 15,600-teu ships at the yard for delivery in the fourth quarter of 2023 and the first three months of 2024.
It also holds a pair of options at HHI.
The vessels are to be fitted with 12,800-cbm membrane-type LNG bunker tanks. This is in contrast to the high manganese steel type-B tanks that have been selected for most other South Korean-built LNG-fuel newbuildings.
Newbuilding sources told TradeWinds that MSC is close to confirming switches to LNG fuelling for other neo-panamax boxship tonnage it has on order at Chinese shipyards Dalian Shipbuilding Industry Co (DSIC), Guangzhou Shipyard International (GSI) and Yangzijiang Shipbuilding Co.
Cido originally contracted two scrubber-fitted boxships at HHI in March which have been chartered out to MSC. These vessels were reportedly priced at $126m each. It held two optional slots, but these are said to have expired.
Those close to the business price the LNG-fuelled newbuildings at around $175m each.
Cido said it does not comment on its newbuilding activities.
Fuelling switch
MSC appears to have had a change of thinking on its fuelling choices and is now shifting over to LNG.
Shipbrokers are naming MSC as the charterer of four LNG-fuelled boxships recently contracted by Zodiac Maritime at Daewoo Shipbuilding & Marine Engineering.
In July, MSC was linked to four LNG-ready neo-panamax containership newbuildings in an order split between DSIC and GSI in China. These are expected to be shifted to LNG-fuelled vessels.
Similarly, the company has chartered a series of similar sized newbuildings contracted by Seaspan at Yangzijiang which are also likely to be moved to LNG fuel.
MSC was contacted for this article.
Tank choices
The latest Cido orders at HHI are a coup for French membrane-type designer GTT, which has been trying to crack the LNG bunker tank market.
These would be the first membrane-type LNG bunker tanks built at HHI.
Observers said the rising price of materials has increased the cost of South Korean-developed high manganese steel, allowing membrane to compete.
GTT also claims that its system can offer larger and cheaper tank solutions over the type-B alternatives offered by shipyards that will also save on cargo space.
On 14 October, GTT announced a contract with HHI for LNG fuel tanks built with its Mark III Flex membrane containment technology, which appears to match the Cido boxship orders. But it did not name the shipowner or charterer.
In July, Seaspan Corp flipped the LNG bunker tanks on the later-delivering half of its order for 10 dual-fuelled neo-panamax boxships from high manganese steel type-B tanks to membrane-type designs in an effort to build them “ammonia-ready”.
The vessels are on order at Samsung Heavy Industries and are chartered to liner operator Zim.
