16 February 2023 (Lloyd's List) - MEDITERRANEAN Shipping Co has firmed up an order for 10 dual-fuel neo-panamax containerships at Zhoushan Changhong International Shipyard.

China International Marine Containers, which owns 30% of the Chinese yard through its leasing arm in Shenzhen, said the 11,500 teu ships, which can run on liquefied natural gas, are due for delivery in 2025-2026.

The newbuildings are equipped with C-type LNG tanks and the “methanol-ready” design that enables an easier conversion for the ships to burn the potential carbon-neutral fuel in future, according to CIMC. They are developed by the Offshore Engineering Design & Research Institute of CIMC (Oric) and will be entered with DNV, Lloyd’s Register and Bureau Veritas respectively.

The fresh tonnage is priced at about $120m each, while CIMC’s leasing units are involved in the finance of the ships, according to shipbroker sources. The Chinese conglomerate said its shipbuilding-related subsidiaries have worked with Mediterranean Shipping Co on several projects in the past. Those include orders for 14 eco-designed, 8,800 teu ships for which Oric and its sister companies provided an integrated service covering ship design, finance and construction.

MSC, the world’s largest container shipping carrier by size of existing fleet, also boasts the largest newbuilding orderbook in the sector, according to Alphaliner. Having embarked on an aggressive order binge since late 2020, the Geneva-based line now has 132 ships on order with a combined capacity of more than 1.8m teu, making up nearly 39% of its fleet in service.

Boxship orders have continued despite weakened freight rates. Elsewhere, HMM earlier this week announced contracts with Hyundai Samho Heavy Industries and HJ Shipbuilding and Construction to build nine 9,000 teu methanol-fuelled ships, while Yang Ming was reported to have signed a letter of intent for the construction of five dual-fuel 15,000 teu ships at Hyundai Heavy Industries.