Hapag-Lloyd Orders Six LNG-powered 23,500+ TEU ULCVs in $1 billion Deal
WMN..German liner giant Hapag-Lloyd has ordered six ultra-large container vessels from Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME).
The $ 1 billion investment will see the LNG-powered 23,500+ TEU vessels delivered to Hapag-Lloyd between April and December 2023.
The vessels will be fitted with fuel-efficient high-pressure dual-fuel engines, that will operate on LNG, but they will have alternatively sufficient tank capacity to operate on conventional fuel, the company said.
Hapag-Lloyd added that the financing for the massive investment has already been secured.
“With the investment in six ultra large container vessels we will not only be able to reduce slot costs and improve our competitiveness on the Europe – Far East trade, but also take a significant step forward in modernizing our fleet. Additionally, we will further reduce our environmental impact,” Rolf Habben Jansen, CEO of Hapag-Lloyd, said.
The vessels will be deployed on the Europe – Far East routes as part of THE Alliance.
Decision on orders
The German boxship owner revealed intentions to order new ULCVs at the beginning of this year, saying orders would be most likely until 2021 as the company needed to start rejuvenating its fleet with more efficient and eco-friendly vessels.
However, with the outbreak of COVID-19 and its massive impact on the container shipping sector, the company delayed the decision on ordering until further notice due to the market uncertainty.
Despite market volatility, container shipping majors have managed to stay in the black due to extreme capacity discipline aided by lower bunker costs and increasing freight rates.
At the beginning of December, Hapag-Lloyd, like many of its counterparts, raised its earnings forecast amid better than expected business performance.
For the 2020 financial year, earnings before interest, taxes, depreciation and amortisation (EBITDA) of €2.6 to 2.7 billion, from the previously announced €2.4 to 2.6 billion. Earnings before interest and taxes (EBIT) were raised from EUR 1.1 to 1.3 billion to €1.25 to 1.35 billion.
LNG as fuel
The investment in LNG-powered giants comes on the back of Hapag-Lloyd’s first conversion project of an LNG-powered ultra-large containership to LNG.
Specifically, Hapag-Lloyd’s 15,000 TEU Sajir boxship arrived at the at the Chinese shipyard Huarun Dadong Dockyard Co in Shanghai on August 31 for the retrofit. ….reports World Maritime News.
The $ 1 billion investment will see the LNG-powered 23,500+ TEU vessels delivered to Hapag-Lloyd between April and December 2023.
The vessels will be fitted with fuel-efficient high-pressure dual-fuel engines, that will operate on LNG, but they will have alternatively sufficient tank capacity to operate on conventional fuel, the company said.
Hapag-Lloyd added that the financing for the massive investment has already been secured.
“With the investment in six ultra large container vessels we will not only be able to reduce slot costs and improve our competitiveness on the Europe – Far East trade, but also take a significant step forward in modernizing our fleet. Additionally, we will further reduce our environmental impact,” Rolf Habben Jansen, CEO of Hapag-Lloyd, said.
The vessels will be deployed on the Europe – Far East routes as part of THE Alliance.
Decision on orders
The German boxship owner revealed intentions to order new ULCVs at the beginning of this year, saying orders would be most likely until 2021 as the company needed to start rejuvenating its fleet with more efficient and eco-friendly vessels.
However, with the outbreak of COVID-19 and its massive impact on the container shipping sector, the company delayed the decision on ordering until further notice due to the market uncertainty.
Despite market volatility, container shipping majors have managed to stay in the black due to extreme capacity discipline aided by lower bunker costs and increasing freight rates.
At the beginning of December, Hapag-Lloyd, like many of its counterparts, raised its earnings forecast amid better than expected business performance.
For the 2020 financial year, earnings before interest, taxes, depreciation and amortisation (EBITDA) of €2.6 to 2.7 billion, from the previously announced €2.4 to 2.6 billion. Earnings before interest and taxes (EBIT) were raised from EUR 1.1 to 1.3 billion to €1.25 to 1.35 billion.
LNG as fuel
The investment in LNG-powered giants comes on the back of Hapag-Lloyd’s first conversion project of an LNG-powered ultra-large containership to LNG.
Specifically, Hapag-Lloyd’s 15,000 TEU Sajir boxship arrived at the at the Chinese shipyard Huarun Dadong Dockyard Co in Shanghai on August 31 for the retrofit. ….reports World Maritime News.
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