Newbuilding orders continue to be dominated by the containership sector, with orders for 36 boxships confirmed during January at Chinese and South Korean shipyards. The China deals include an order for two firm and two optional 13,000 teu, dual-fuel, neo-panamax units contracted by Singapore’s Pacific International Lines at Jiangnan Shipyard for delivery in fourth-quarter 2024. Meanwhile, X-Press Feeders added two further 7,000 teu, conventional-fueled, ships to an existing 10-vessel order at Shanghai Waigaoqiao Shipbuilding Co. Priced at $83m each they are due for delivery in the second half of 2024. Other major newbuilding contracts placed in China included an order understood to be linked to Mediterranean Shipping Company for six dual-fueled 16,000 teu ships priced at about $160m per vessel.

“Containership owners are earning huge amounts of money during a rare demand, rather than supply driven, market and can afford to invest in the latest, efficient, new technology,” said Chris Pälsson, head of Lloyd’s List Intelligence consultancy division. “In short, they are attempting to future-proof their fleets although there’s no consensus around what that is. “More recently it is mostly via the dual-fuel solution with some operators adding built-in flexibility for biogas.” In South Korea, Maersk confirmed the extension of its existing eight-vessel, 16,000 teu methanol-ready contract at Hyundai Heavy Industries by a further four ships. Meanwhile, non-operating owner MPC Capital of Germany confirmed an order for four 5,500 teu vessels at Hanjin Heavy Industries & Construction Co. These methanol-ready units are due for delivery in 2023 and are estimated to have been priced at $70m apiece.

In the feeder max sector, South Korean liner operator Sinokor placed contracts at Hyundai Mipo Dockyard for four 2,500 teu ships worth $40m apiece. Other recent orders placed in South Korea included three 1,800 teu, LNG-ready ships for Greek shipowner Capital Maritime at Hyundai Mipo. Pipeline orders confirmed included Taiwan-based liner operator Yang Ming, which is expected to sign contracts for a series of neo-panamax ships soon. In the dry cargo sector, a buoyant and volatile dry cargo market is driving new orders for bulk carriers, which currently make up 28% of the global shipbuilder orderbook. Recent orders included a pair of ultramax ships ordered by KC Maritime of Hong Kong at COSCO Zhoushan Shipyard, while Poland’s Polsteam signed up for a quartet of 37,000 dwt, lakes-fitted, ships at Dalian Shipbuilding Industry Co. In the capesize sector NYK Line confirmed four dual-fueled newbuildings from Japanese shipbuilders Nihon Shipyard (two vessels) and Namura Shipbuilding Co (one ship) with one vessel being built by Shanghai Waigaoqiao Shipbuilding Co in China.

Despite delays in investment in new liquefaction capacity, there was significant ordering of new liquefied natural gas carriers during January. These included a contract for up to six 174,000 cu m ships placed by Japanese company MOL at China’s Hudong-Zhonghua Shipbuilding Co for long-term charter to China National Offshore Oil Co. The same shipyard also confirmed an order for a single 174,000 cu m vessel in a speculative contract placed by CSSC Leasing. Other LNG newbuilding orders placed in January included Maran Gas (two 174,000 cu m ships at Daewoo Shipbuilding & Marine Engineering Co.

A relatively rare newbuilding order in the pure car and truck carrier sector was confirmed by Norway’s Hoegh Autoliners for 4+8 9,000 ceu vessels at CMHI with delivery in 2024 and 2025. “The vehicle carrier sector has a very small orderbook and with the car industry in some kind of vacuum presently and more and more assembly plants being positioned closer to market, there is marginal future growth for this sector,” said Mr Pälsson. “This factor is more positive for container shipping as it provides more demand for car parts shipments rather than completed cars.” Nevertheless, demand for more efficient ships should drive orders for new tonnage in the medium term, he added. With a potential reduction in long-term demand for crude oil and an already large orderbook, orders for new tankers slowed considerably in recent months. Nevertheless, Sinokor contracted a pair of aframax (114,000 dwt) tankers at South Korea’s K Shipbuilding (the former STX). In the product tanker sector, Asiatic Lloyd Maritime ordered four medium range two (50,000 dwt) units at Hyundai Mipo. According to Lloyd’s List Intelligence Consulting Intelligence data, China now has a 54% share of the global shipbuilding orderbook, up from around 48% as at this time last year.