Mediterranean Shipping Co (MSC) is adding neo-panamax containerships and feeder boxships to its ever-growing newbuilding shopping list that may see the company splashing out over $1.5bn to acquire owned tonnage.
According to shipbuilding sources, MSC is holding discussions with shipyards in South Korea for at least six 15,000-teu vessels and up to 10 feeder ships of 1,800 teu with a Chinese shipyard.
Downsizing, up-spec
The company has also inked a letter of intent (LOI) for two 3,700-teu boxships at Fujian Mawei Shipbuilding for ice-class 1A, scrubber-fitted vessels in what is thought to be a downsizing of an earlier order that now has higher specifications.
In August, MSC was reported to have inked a LOI with state-owned Fujian Mawei for two conventionally-fuelled 4,200-teu vessels for delivery in 2024.
"It is likely that these newbuildings it is discussing with the yards will be ordered directly by MSC itself," one source said.
Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering are said to be holding discussions with the Swiss liner operator on LNG dual-fuelled 15,000-teu newbuildings.
Fuelling switch
MSC has made a shift to contracting and chartering LNG-fuelled tonnage this year and has been making efforts to change the fuelling choice on some of its on-order boxship tonnage in China.
Those folllowing the company said the liner giant has approached Huanghai Shipbuilding in Shandong province for a series of 1,800-teu Bangkokmax design vessels. It is seeking four firm ships plus options for additional six units.
The shipowner has been contacted about these latest orders. Shipyard officials declined to comment on their activities citing contract confidentiality.
Pricing
One newbuilding broker estimates that the six LNG-fuel neo-panamax containerships would cost MSC about $1.11bn or $185m apiece due to a hike in steel plate cost and equipment prices and tight supply of yard berths.
A shipbuilding source said MSC is expected to pay around $29m each for the 1,800-teu newbuildings.
"MSC's 1,800-teu newbuildings are not the standard feeder vessels that were ordered by shipping companies," they said. "These are high specification vessels. Huanghai needs to thoroughly study the vessels' design to see if it can meet MSC's demand."
There is conflicting talk in the market. Some brokers reported MSC has already signed a LOI with Huanghai, while others said the newbuilding discussions are still at the early stage.
A Huanghai executive declined to comment on the company's shipbuilding activities, citing contract confidentiality.
The original 4,200-teu vessels at Fujian Mawei were priced at $50m each. Brokers said the two 3,700-teu containerships may be smaller in size, but they will be costing an additional $10m per ship, or $60m apiece, due to the vessels high specifications.
MSC has been behind several orders of ultra-large and megamax containerships that were placed by tonnage suppliers Seaspan Corp and Chinese leasing companies this year.
Last month, the liner operator was identified as the charterer behind four LNG-fuelled neo-panamax containership newbuildings that was ordered by Zodiac Maritime and two by Cido Shipping.
The 15,000-teu Zodiac vessels cost in the region of $130m each and will be the first LNG dual-fuel boxships for the London-based shipowner. The quartet were options declared by Zodiac, which explained the low newbuilding price.
