Wan Hai Lines orders methanol dual-fuel boxship fleet

Taiwanese shipping company Wan Hai Lines has placed orders for up to twenty methanol dual-fuel container vessels at South Korean and Taiwanese shipyards.

As disclosed, the company signed a letter of intent (LOI) for twelve methanol dual-fuel container vessels on behalf of Wan Hai Lines (Singapore) on August 12, 2024. The ships will have a capacity of around 8,000 TEU.

The LOI includes purchase options for four units, Wan Hai revealed in a stock exchange filing.

To be constructed by CSBC Corporation in Taiwan, the ships will cost between $102.5 million and $124 million per unit. The total transaction price will be between $1.23 billion and $1.98 billion.

What is more, the company signed another LOI for four 8,700 TEU methanol dual-fuel boxships on August 12.

The units will be built at HD Hyundai Samho shipyard in South Korea and Wan Hai will pay $113.5 million to $130.41 million per vessel. The total transaction is estimated at $454 million – 521.64 million.

This is the first time Wan Hai has ordered vessels with dual-fuel propulsion, opting for methanol as marine fuel. With this move, Wan Hai followed in the footsteps of its counterparts including Maersk, Ocean Network Express (ONE), Evergreen Marine and others.

In related news, Maersk recently welcomed its third large dual-fuel methanol-enabled containership to its fleet. The vessel was christened by Danish wind power major Vestas and named Antonia Maersk at a ceremony in Aarhus, Denmark, on August 9, 2024.

Momentum continues to build for methanol as shipowners become more confident about their fuel choice. Their decision is mainly driven by greater demand for methanol as clean alternative fuel, numerous investments in the production and bunkering infrastructure and tighter emission regulations in the EU and globally.

The global orderbook for methanol-fueled vessels keeps growing and ship conversions are also on the rise. Apart from the containership segment, new orders are pouring in also in the tanker, bulk carrier, passenger and cruise vessel segments. Orders for vessels equipped with methanol engines have emerged in the offshore wind industry as well, highlighting the popularity of methanol.