Hapag-Lloyd Invests $4 Billion for 24 LNG Boxships From Chinese Yards

Hapag-Lloyd has finalized two long-rumored contracts for 24 more containerships, adding $4 billion worth of order volume for two Chinese yards. The new boxships will deliver in 2027-8, time horizon that reflects historically high level of ordering activity at the world's biggest shipyards. 

The orders include a dozen 9,000-TEU vessels from New Times Shipbuilding and a dozen 17,000-TEU vessels from Yangzijiang Shipbuilding. These vessel sizes have more flexibility and adaptability for changing trading patterns, since they can call at a much broader range of seaports than larger size classes. 

All of the orders will be powered by high-pressure LNG dual-fuel engines, with low methane slip. Hapag-Lloyd emphasized that they could one day run on liquefied biomethane rather than fossil LNG. They will also be built "ammonia-ready" for later conversion when true zero-carbon fuels become available. 

Hapag-Lloyd says that the newbuilds will replace aging tonnage in the company's current fleet, and will increase efficiency. 

"This investment is one of the largest in the recent history of Hapag-Lloyd, and it represents a significant milestone for our company," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. "Operating a fleet of more efficient vessels will also enhance our competitive position."

Hapag's objective is to cut emissions by one-third by 2030, then achieve net-zero by 2045, in line with the Paris 1.5-degree goal. Its strategy is to upgrade its fleet with more efficient technology and tonnage, then transition to green fuels when available.