Mediterranean Shipping Co (MSC) has lifted its under-construction tally of neo-panamax container ships of between 12,200 teu and 16,000 teu to 63 vessels — with an order for six newbuildings in China.
Brokers have linked the Swiss liner giant to a sextet of LNG dual-fuelled, 16,000-teu newbuildings that state-owned Dalian Shipbuilding Industry Co (DSIC) disclosed on Monday.
MSC did not comment when contacted. One DSIC manager declined to confirm if the liner company was behind the LNG dual-fuelled ships, citing contract confidentiality.
The DSIC deal is the second newbuilding contract that MSC has sealed this year. The first deal involved six LNG-fuelled 15,000-teu container ships at Hyundai Samho Heavy Industries.
Brokers said the Hyundai ships were priced at about $185m per ship. MSC is slated to take delivery in the first half of 2024.
MSC’s contract with Hyundai includes an option for six additional vessels.
Brokers said the DSIC ships cost close to $180m each.
The neo-panamax newbuildings will be installed with a propulsion system provided by WinGD — also a China State Shipbuilding Corp (CSSC) subsidiary — and can be powered by LNG and conventional oil-based fuels. They have been designed with type-B tanks.
They are the first dual-fuelled container ships for DSIC, although the yard is building an LNG dual-fuelled VLCC for Cosco Shipping Energy Transportation.
The 319,000-dwt crude carrier — to be named Yuan Rui Yang — completed sea trails last year and is set to be delivered to the Chinese owner.
MSC’s neo-panamax container ships will be built by DSIC and the reborn CSSC (Tianjin) Shipbuilding, the former Tianjin Xingang Shipbuilding Heavy Industry.
Tianjin Xingang was declared bankrupt in 2000 and underwent restructuring. It was taken over by DSIC in December.
Shipbuilding sources said DSIC is slated to deliver the sextet in late 2024.
Clarksons’ Shipping Intelligence Network shows there are 204 neo-panamax container ship newbuildings of between 12,200 teu and 16,000 teu on order at yards in the Far East, excluding MSC’s latest six DSIC vessels.
TradeWinds has calculated that about 30% of boxship newbuildings of this range will be operated by MSC on delivery.
The liner giant has chartered 11 LNG-fuelled ships of 15,300 teu under construction at South Korea’s Hyundai Heavy Industries and Hyundai Samho. It has fixed the container ships from Idan Ofer’s Eastern Pacific Shipping for at least 18 years each.
HHI and Hyundai Samho are slated to deliver the vessels between late 2022 and 2023.
MSC was also identified as the charterer of eight 15,000-teu newbuildings — four dual-fuel LNG units and four conventionally-fuelled vessels — that Zodiac Maritime ordered last year at Daewoo Shipbuilding & Marine Engineering.
The conventional-fuelled boxships, which were reported to cost Zodiac about $108m each, are due for delivery this year, while the dual-fuel ships are slated for 2023 delivery and were reported to be priced in the region of $130m each.
The charter period and rate of Zodiac’s newbuildings were not disclosed.
Over in China, MSC is scheduled to take delivery of 17 conventionally-fuelled 16,000-teu boxship newbuildings — nine from DSIC and eight from Guangzhou Shipyard International (GSI) in 2023 and 2024.
The vessels were ordered by Japanese tonnage provider Doun Kisen and Chinese leasing companies Minsheng Financial Leasing and China Merchants Financial Leasing.
MSC was reported to have chartered the container ships under long-term contracts.
Brokers said MSC is planning to upgrade these conventionally-fuelled neo-panamax vessels into dual-fuel LNG units. But DSIC and GSI are said to be seeking a high price for the fuel conversion and discussions are ongoing.
MSC is also behind a series of neo-panamax container ship newbuildings that Canada's Seaspan Corp has on order at Singapore-listed Yangzijiang Shipbuilding.
The Geneva-based company was reported to have fixed 15 conventionally-fuelled vessels from Seaspan Corp — 10 units of 15,000 teu and five of 12,200 teu. The vessels are slated for delivery this year and in 2023.
Brokers said Seaspan’s boxships were also candidates for a fuel switch to LNG but Yangzijiang has declined the request due to the delivery schedule of the vessels.
Mediterranean Shipping Co (MSC) will be operating 30% of the 210 neo-panamax container ship newbuildings of between 12,200 teu and 16,000 teu that were ordered at shipyards in South Korea and China.
27 of the vessels will be LNG dual-fuelled
The company is said to have made a fuel switch request to have nine conventional-fuelled 16,000-teu vessels that are booked at Dalian Shipbuilding Industry Co and eight similar size conventional-fuelled vessels on order at Guangzhou Shipyard International to LNG dual-fuelled. Talks are said to be ongoing.
