CMA CGM awards $2.6B contract for LNG dual-fuel boxships to Chinese shipyard

French shipping and logistics major CMA CGM is further expanding its LNG-fueled fleet with a new order worth nearly $2.6 billion for twelve dual-fuel LNG containerships to be built in China.

The shipbuilding contract encompassing a dozen 18,000 TEU containerships was awarded to Jiangnan Shipyard, a part of state-owned China State Shipbuilding Corporation (CSSC).

According to data provided by Intermodal, each unit costs between $206 million and $217.5 million, totaling up to $2.6 billion.

The boxships with LNG dual-fuel propulsion are scheduled for delivery in 2028 and 2029.

Just recently, CMA CGM ordered a similar LNG dual-fuel containership fleet in South Korea. These boxships will be built by HD Hyundai Heavy Industries (HD HHI) under the contract valued at about $2.57 billion. The newbuilds are slated for delivery by the end of December 2028.

As Intermodal’s report shows, the French player is not the only one turning to China as the majority of last week’s newbuilding orders were booked by Chinese shipyards, despite the United States’ recently proposed tariffs on Chinese-built and operated vessels.

To remind, the Office of the United States Trade Representative (USTR) has proposed a measure to charge a fee of up to $1.5 million for Chinese-built vessels entering US ports in an attempt to curb China’s dominance in shipping, shipbuilding and logistics sectors.

While these measures are still under discussion, they could affect a massive number of vessels if implemented and potentially disrupt global shipping, increase costs, and significantly reshape trade routes.

Intermodal’s preliminary data shows that 41.5% of the total in-service fleet was built in Chinese shipyards, including 22.2% of the global tanker fleet, 32.2% of the container fleet, and 11.6% of the gas fleet.

Additionally, the Chinese shipyard orderbook consists of 3,759 vessels, including 913 bulkers (6.5% of the global fleet), 776 tankers (9.3%), 591 containers (8%), and 222 gas carriers (8.3%).

The proposed measures would have the largest cost impact on containerships, which accounted for almost 82% of total port calls in the US in 2024.

The energy sectors would also be exposed, with US LPG trade and a significant share of LNG and crude oil shipments at risk.

On the other hand, the US-built fleet is minimal with limited capacity, underscoring the country’s reliance on foreign-built ships to sustain its maritime trade.

Moreover, alternatives to Chinese shipbuilding are limited, as other major shipbuilding nations such as South Korea and Japan, lack the capacity to immediately fill the gap.

Additionally, many non-Chinese shipping companies operate Chinese-built vessels, meaning these measures would penalize global trade partners beyond China, leading to potential diplomatic and economic retaliation, Intermodal argues.