Mediterranean Shipping Co (MSC) has struck a charter deal with Singapore’s Eastern Pacific Shipping (EPS) for 11 LNG-fuelled, 15,300-teu containership newbuildings.
Switzerland-based MSC is said to have fixed the vessels, under construction at Hyundai Heavy Industries and Hyundai Samho Heavy Industries, for at least 18 years each.
The Swiss-based liner operator will take delivery between late 2022 and 2023.
“The charter deal has further strengthened the relationship between MSC and EPS,” said a shipping source. “They have a long-standing relationship that goes back to the older generation.”
Industry sources said that one shipbroker was involved in the deal, but the final negotiation was done directly between Idan Ofer and MSC chairman Gianluigi Aponte.
MSC confirmed the charter deal with EPS.
The liner giant said it is committed to investing in a sustainable future.
"While the pathway for decarbonising shipping is still unclear, with no new fuels available globally at scale to deploy across our fleet of 570 ships, this charter should help us to improve CO2 emissions performance, provide other valuable learnings and keep our options open," said MSC's spokesman.
"MSC continues to envisage a range of fuel solutions on the route to a zero carbon future."
The charter contract with EPS is a significant move for MSC as these 11-ships will be the company’s first LNG-fuelled newbuildings.
MSC has 50 containerships —10 ultra-large vessels and 40 neo-panamax boxships — on order at yards in China and South Korea but all are conventionally fuelled.
The charter rate MSC is paying for the EPS LNG-fuelled boxships has not been disclosed.
EPS is believed to be paying between $130m and $135m for each of the newbuildings, which were ordered in 2019 and early this year.
Industry sources said shipyards are now quoting close to $160m for an LNG-fuelled, 16,000-teu newbuilding delivering in 2024.
EPS is believed to be the first tonnage supplier to have made the move into LNG-fuelled containership newbuildings in 2018.
It started off with six 15,300-teu boxships at Hyundai Samho and subsequently grew the order to 23 ships. The other 12 vessels were fixed out to CMA CGM.
The French liner company has already taken delivery of three of these vessels — the CMA CGM Tenere and CMA CGM Scandola (both built 2020) and the CMA CGM Iguacu (built 2021).
