Hapag-Lloyd confirms $4 billion orders for 24 LNG dual-fuel, ammonia-ready boxships

November 7, 2024, by Fatima Bahtić

As part of a major fleet expansion plan, German shipping giant Hapag-Lloyd has confirmed orders for 24 liquefied natural gas (LNG) dual-fuel containerships with two Chinese shipyards.

As informed, the German shipowner locked in deals with Chinese shipbuilders, Yangzijiang Shipbuilding Group and New Times Shipbuilding, which will build twelve vessels each.

Specifically, the boxships ordered at Yangzijiang Shipbuilding will have a capacity of 16,800 TEU and these units will be used to expand the capacity of services that are already in place.

On the other hand, the twelve units booked at New Times Shipbuilding will boast a capacity of 9,200 TEU and replace older ships in the Hapag-Lloyd fleet that will be nearing the end of their service life this decade.

According to Hapag-Lloyd, all containerships will be equipped with low-emission, high-pressure liquefied gas dual-fuel engines that are “extremely fuel-efficient”.

In addition, these vessels will be able to use biomethane, which could reduce CO2 emissions by up to 95% compared to conventional propulsion systems.

Hapag-Lloyd will take delivery of the new containerships, which will also be ammonia-ready, between 2027 and 2029.

The newbuildings will have a combined capacity of 312,000 TEU and involve a combined investment volume of around $4 billion. The firm has noted that long-term financing of $3 billion has already been committed.

“This investment is one of the largest in the recent history of Hapag-Lloyd, and it represents a significant milestone for our company as it pursues the goals of its Strategy 2030, such as to grow while also modernizing and decarbonizing our fleet. Operating a fleet of more efficient vessels will also enhance our competitive position, and thanks to the increase in capacity, we will continue to offer our customers a global, high-quality product,” said Rolf Habben Jansen, CEO of Hapag-Lloyd.

Hapag-Lloyd currently controls 287 containerships with a total transport capacity of 2.2 million TEU. This makes the firm one of the world’s leading liner shipping companies. In addition, it operates the largest fleet sailing under the German flag.

A few days ago, the liner major christened its Hamburg Express class flagship, the 23,660 TEU dual-fuel Hamburg Express, in a ceremony held at the Container Terminal Burchardkai in the Port of Hamburg.

Hapag-Lloyd has committed to the 1.5-degree target of the Paris Agreement. By 2030, the absolute greenhouse gas emissions of the company’s fleet operations are to be reduced by around one-third compared to 2022 – in what will be another step toward net-zero fleet operation by 2045.

The shipowner expects that this ambitious goal will be achieved by investing in efficient newbuildings, slow steaming, fleet modernization, and the use of new propulsion technologies and alternative fuels.

Considering the recent investment decision announced on April 16 of this year to retrofit five vessels to methanol propulsion, this investment is another step in Hapag-Lloyd’s efforts to prepare for a multi-fuel future and to drive the decarbonization of the liner shipping industry.