Taiwan’s Evergreen Marine Corp is set to become the world’s fifth-largest container line as it confirms orders to build 24 methanol-enabled, dual-fuel 16,000-TEU (Twenty Foot Equivalent) container ships worth up to US$5 billion. The capacity increase means Evergreen will overtake Hapag-Lloyd for the no.5 spot globally, with vessels totalling more than two million TEU. It was only just over a year ago that Evergreen overtook ONE (Ocean Network Express) as the world’s sixth-largest container carrier in terms of total live fleet capacity.
Evergreen said that, in total, the contract value ranges from US$4.32bn to US$5.04bn, working out to be an investment of US$180m to US$210m per vessel. The deals, approved at a meeting of Evergreen Marine (Asia) directors on Tuesday this week, have been split between South Korean and Japanese shipyards.
Samsung Heavy Industries (SHI) in South Korea has been entrusted with the construction of sixteen 16,000 TEU methanol dual fuel container vessels from the series, while Japan’s Nihon Shipyard will build the remaining eight units.
It takes two to three years to build ships, so the new 24-strong fleet is expected to be ready for delivery between 2026 and 2027.
The orders are a vote of confidence in methanol as a future-proof fuel for the shipping industry, at a time when orders in the sector have exceeded 100 ships featuring methanol-powered engines. (See our previous article on Fuels of the Future HERE).
In addition, the need for fleet rejuvenation and investment in cleaner fuels coincides with a revised decarbonization strategy for shipping adopted by the IMO which aims to reach net-zero “by or around, i.e., close to 2050”.
Also read our related article on: The IMO Summit: Outcomes for Shipping HERE.
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