Container newbuilds favour large LNG-fuelled ships, ignore feeders
An analysis of the container shipping orderbook, up to 2029 deliveries, reveals that the top 10 vessel operators are convinced that LNG is the most appropriate fuel in the immediate future.
The world’s biggest container shipping lines have a total of 371 vessels on order, of which 162, totalling 2.2 million teu, are LNG powered, 80 of these vessels are over 15,000 teu in size, representing 1.44 million teu.
In total these carriers have ordered 4,843,424 teu between them with some notable details in the orderbook. Most eye-catching is the fact that the carriers have favoured the larger vessels over feeder sizes.
It’s a problem that may come back to bite the carriers said Dynamar analyst Darron Wadey: “It is indeed a concern that we might be going top-heavy in terms of the size of ships being ordered. These smaller shortsea vessels are already stressed by the various sustainable yardsticks by which all are now being measured because of their smaller size.”
According to Wadey the lack of newer tonnage with alternative, greener, technology for feeder vessels, “Will do nothing for the industry’s image”.
He did stress, however, that, “There is, though, a silver lining. It takes much less time to build a smaller ship, and as yard slots become available, the situation could be rectified relatively quickly.”
In addition, to the feeder vessel challenge Maersk is again among the least active of the top five carriers, with just 21 ships on order six in each of the 7,500-10,000 and 15,000+ teu categories and nine in the intermediate, 12,500-15,000 teu range.
Wadey said: “From the start of its integrator strategy [in 2017] Maersk’s orderbook capacity has not been above even 10% of its current fleet. All it is doing here is more of the same.”
Ocean Network Express (ONE), is another carrier that continued with its strategy of ordering ships in the 12,500-15,000 teu range, with 42 ships in this range.
Wadey said: “ONE and its shareholders have never really gone in for the very largest vessels,” ONE has six 20,200 teu and six 24,100 teu ships all delivered in 2023, “Considering it has nothing else above 15,500 teu, such an orderbook profile is not a departure from previous practice.”
Perhaps most strikingly, however, is the carriers’ collective embrace of alternative fuels: “The carriers are committed and whilst many will have shared values towards sustainability, the sector is also being pushed/pulled by regulations on the one hand and, increasingly, the demands of major shippers who also have their own sustainability targets,” said Wadey.
The analyst also pointed out that there was still no clear pathway to decarbonisation for shipping even though dual-fuelled ships now form the majority of vessels on order, which shows the sectors commitment to change, according to Wadey.
“Let us not forget, we are still talking about very young, if not nascent technologies: the very first LNG fuelled container ship only entered service in 2017; the very first methanol [container] ship only entered service late last year; the very first ammonia-powered vessel (period) is only due this year, let alone an ammonia-fuelled containership,” added Wadey.
source:seatrade-maritime.com
