Wan Hai splurges up to $2.5 billion on new box ships

In a significant move towards greener shipping, Taiwanese container carrier Wan Hai Lines has contracted up to 20 new methanol dual-fuel vessels with shipyards CSBC in Taiwan and Hyundai Samho in South Korea. This marks Wan Hai’s first foray into methanol-powered ships, reflecting the growing industry trend of exploring alternative fuels. The order includes 8,000 TEU container ships from CSBC and 8,700 TEU ships from Hyundai Samho, with the total investment potentially reaching $2.501 billion if all options are exercised.

The first part of the order involves a Letter of Intent (LOI) signed with CSBC for twelve 8,000 TEU container ships, with options for four additional units. These ships will be equipped with methanol dual-fuel propulsion systems, a choice that has garnered attention due to the challenges associated with sourcing green methanol. The vessels are priced between $102.5 million and $124 million each, bringing the potential value of this contract up to $1.984 billion if all options are taken up.

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Additionally, Wan Hai has placed a second order with HD Hyundai Samho for four 8,700 TEU methanol dual-fuel newbuildings. These vessels, priced between $113.5 million and $130.41 million each, add up to a potential contract value of $521.64 million. The delivery dates for both sets of orders have yet to be disclosed.

This ambitious move by Wan Hai comes amid a broader industry trend towards dual-fuel vessels, driven by increasing concerns over the availability of green methanol and the industry’s pursuit of net-zero emissions. The decision to opt for methanol dual-fuel, rather than the more commonly chosen LNG, has been described as somewhat surprising by industry analysts, given the challenges in securing a reliable supply of green methanol.