Seaspan ventures into PCTC sector with Hyundai Glovis-backed deal for up to 10 ammonia-ready newbuilds

Hong Kong-based containership owner Seaspan Corporation is entering a new market segment with a pivotal order for up to ten dual-fuel LNG Pure Car and Truck Carrier (PCTC) vessels in partnership with South Korean shipping company Hyundai Glovis.

Seaspan has signed the construction contract with China State Shipbuilding Corporation’s Shanghai Waigaoqiao Shipbuilding. The deal entails the construction of six firm and four optional 10,800 CEU dual-fuel PCTCs, becoming the world’s largest pure car/truck carriers.

The newbuilds will be ammonia and methanol-ready, Seaspan said. The shipowner already has an extensive newbuild program comprising 70 ships, which includes 25 dual-fuel LNG containerships.

“This deal signifies our customers’ trust and value of Seaspan’s commitment and capability of executing alternative fuel initiatives,” emphasized Bing Chen, President and CEO of Seaspan.

“By incorporating our extensive experience in dual-fuel LNG containerships, while working proactively with all stakeholders during this decarbonization journey, Seaspan is uniquely poised to contribute to the standards and progress of sustainable shipping.”

“We’re extremely proud of partnering with Glovis, the market leader in the PCTC sector, and leverage our integrated platform to facilitate their strategic success,” added Kun Li, Seaspan’s Chief Commercial Officer.

“As jurisdictions seek to transition away from conventional fueled vehicles to electric vehicles, we see this as an opportunity to not only meet the current demand for sustainable shipping solutions but also support the global initiative for cleaner transportation alternatives.”

The move is being revealed on the back of Hyundai Glovis’ allocation of $1.85 billion for the acquisition of 12 LNG dual-fuel car carriers as the company seeks to build its position in the car-carrying market amid growing demand.

The company was targeting delivery in 2027 allowing for an operating service of 20 years for the ships.

The investment aims at securing a fleet of LNG dual-fuel PCTCs to stabilize mid- to long-term fleet operations and respond to strengthened international environmental regulations, the company said last month.

In recent years, the automotive industry has grappled with a pronounced shortage of new car carrier orders, creating a bottleneck in the specialized transport capacity crucial for vehicle distribution.

The surge in car demand post-pandemic has intensified this challenge, prompting numerous automakers and logistics providers to explore container shipments as a viable alternative.

The years 2021 and 2022 have witnessed a notable upswing in car carrier newbuild orders, attributed to robust market conditions and the resumption of owners’ fleet renewal initiatives. This includes concerted efforts to propel manufacturers toward environmentally conscious practices throughout the supply chain.