27 September 2023 (Lloyd's List) - CMA CGM has overtaken Maersk as the container line company with the largest dual-fuel methanol boxship orderbook following a new order for eight 9,200 teu ships from a Chinese shipyard.

China State Shipbuilding Corp disclosed today that it signed the newbuilding contract today, September 27, with a “renowned European carrier”.

Sources familiar with the deal told Lloyd’s List that the owner is the French container line giant, which had already inked a letter of intent with the yard earlier this year at the CSSC-controlled Shanghai Waigaoqiao Shipbuilding.

CMA CGM has been approached for comment while financial details of the newbuilding contract were not disclosed.

Newbuilding prices for mid-size methanol boxships of around 9,000 teu capacity are estimated at around $130m in the current market, according to brokers.

This latest order brings the total number of methanol-fuel capable boxships ordered so far by CMA CGM to 32 vessels. In April, the company ordered a dozen 15,000 teu units at two CSSC-controlled shipyard, while in January CMA CGM signed up for the same number of 13,000 teu ships from South Korea’s Hyundai Samho Heavy Industries.    

The deal underlines CMA CGM’s further bet on methanol fuel, seen as a strong contender to be shipping’s next carbon-neutral alternative power, and its growing popularity among container carriers.

CMA CGM initially saw liquefied natural gas as its main alternative marine fuel source and has invested heavily in dual-fuel LNG newbuildings in the past five years.

Maersk, the first mover in this sector, has 24 dual-fuel methanol boxships on order. Elsewhere, other major container line operators that have signed up for containerships capable of operating on the alternative fuel include Evergreen and Cosco (see graph).   

Maersk took delivery of the first-ever dual-fuel methanol containership earlier this year, the 2,100 teu Laura Maersk (IMO: 9944546), which is due to enter service in the Baltic feeder trades in October.  

The vessel uses bio-methanol, but Maersk aims to switch to greener e-methanol made from renewable electricity in future, despite doubts over its costs and availability.

Meanwhile, both Maersk and Cosco have started to invest in the production of clean methanol in an effort to improve supply of the fuel as the dual-fuel methanol vessel fleet grows from next year.

Additional reporting by Robert Willmington and Linton Nightingale