The first batch of 9 methanol-powered container ships! Another shipping giant follows suit in shipbuilding

Although the container shipping market continues to decline, HMM (formerly Hyundai Merchant Marine), South Korea's largest shipping company, remains committed to its mid- to long-term development strategy to expand its fleet size. It has officially started building the first batch of 9 eco-friendly container ships, making this global 8th largest shipping company the fourth shipping giant to order methanol-fueled container ships, following Maersk, CMA CGM, and COSCO Shipping Group.

Tender launched for 9 x 8000TEU methanol-powered container ships

According to foreign media reports, HMM has launched a tender for 9 x 8000TEU methanol-powered container ships. South Korea's three major shipbuilders, Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding, and HJ Shipbuilding (formerly Hanjin Heavy Industries), participated in the bidding, offering the best prices for delivery between 2025 and 2026. It is estimated that the current cost of an 8000TEU container ship is around US$95 million per vessel, which means HMM's order value will reach US$855 million (approximately RMB 5.959 billion).

An HMM spokesperson stated that this order is part of the company's mid-to-long-term development strategy, aiming to expand its container ship fleet size from 820,000 TEU to 1.2 million TEU by 2026.

In July this year, HMM released its mid-to-long-term strategic vision and 5-year investment plan, announcing an investment of over 15 trillion Korean Won (approximately US$11.5 billion) between 2022 and 2026, with the goal of becoming a top global maritime logistics enterprise. This amount is almost equivalent to HMM's total operating revenue over the past year. Of this, HMM will invest 4 trillion Korean Won (approximately US$3.067 billion) in ordering new eco-friendly vessels, including container ships and bulk carriers.

This is HMM's largest investment since its establishment, far exceeding that of 2018 when HMM invested 3.15 trillion Korean Won (approximately US$2.4 billion) to order 20 very large container ships, as part of the South Korean government's "5-Year Plan for Maritime Reconstruction."

Also in July, HMM placed an order with Hyundai Mipo Dockyard for 3 x 1800TEU feeder container ships. Last year, the company also ordered 12 x 13000TEU very large container ships, with Hyundai Heavy Industries and Daewoo Shipbuilding each building 6 vessels.

According to the latest data from Alphaliner, HMM's fleet currently operates 76 vessels, including 37 owned vessels and 39 chartered vessels, with a total capacity of approximately 818,100 TEU, ranking eighth globally. Additionally, the company has 17 new vessels under construction, totaling approximately 184,000 TEU, accounting for 22.5% of the existing fleet.

It is reported that in the first three quarters of this year, HMM achieved cumulative operating revenue of 15,058.9 billion Korean Won (approximately US$11.4 billion), operating profit of 8,686.7 billion Korean Won (approximately US$6.6 billion), and net profit for the period of 8,670.1 billion Korean Won (approximately US$6.588 billion), setting a new historical record for the same period.

HMM stated that, in the future, the company will build global shipowner-level competitiveness by establishing a stable fleet investment portfolio, responding to new environmental regulations, and enhancing digitalization, in accordance with its mid-to-long-term strategic vision and 5-year investment plan.

Fourth among the world's top ten container shipping companies to order methanol-powered container ships

It is worth noting that HMM has not ordered any dual-fuel vessels to date, with only 20 very large container ships ordered from South Korea's three major shipbuilders in 2018, and 12 vessels ordered from Hyundai Heavy Industries and Daewoo Shipbuilding last year featuring an LNG-ready design. Therefore, if the latest methanol-powered vessel order is finalized, it will be HMM's first order for alternative fuel vessels.

HMM will become the fourth owner among the world's top ten container shipping companies to order methanol-powered container ships. Led by Maersk's order last year, methanol fuel, once highly debated, seems to be increasingly becoming the "preferred choice" for container shipping companies when ordering vessels.

       Last year, Maersk took the lead by ordering 1 x 3500TEU and 12 x 16000TEU methanol-powered container ships from Hyundai Heavy Industries Group in South Korea, becoming the world's first company to build methanol-powered container ships. This year, Maersk further ordered 6 x 16000TEU vessels from Hyundai Heavy Industries. In Maersk's view, green methanol is the only marketable low-carbon fuel in today's shipping industry.

Meanwhile, CMA CGM, which has been consistently ordering LNG-powered vessels in recent years, also decided to invest in methanol fuel this year, ordering 6 x 15000TEU methanol-powered vessels from Dalian Shipbuilding Industry Group (DSIC) in the first half of the year. Recently, CMA CGM also announced that it would invest an additional US$1 billion to order 6 more x 15000TEU vessels from DSIC, increasing its number of methanol-powered vessels to 12.

COSCO Shipping Group has also joined the methanol fuel camp, ordering 12 x 24000TEU methanol-powered container ships in October through its two subsidiaries, OOCL and COSCO Shipping Lines. Seven of these vessels will be built by Nantong COSCO KHI Ship Engineering and five by Dalian COSCO KHI Ship Engineering. This marks COSCO Shipping Group's first order for dual-fuel vessels, and its order has also set a new record for the size of methanol-powered container ships.

Earlier this year, CMA CGM, which has always supported LNG-powered vessels, also decided to invest in methanol fuel, planning to order 6 x 15000TEU methanol dual-fuel vessels and reaching an agreement with Dalian Shipbuilding Industry Group (DSIC). The new vessels are expected to be delivered in the second half of 2025, with an estimated cost of approximately US$175 million per vessel. This is CMA CGM's first order for methanol-powered container ships and the world's second order for methanol-powered mega-container ships.

In addition, Ocean Network Express (ONE) of Japan is also considering the application of methanol fuel. At the end of May, ONE announced the order of 10 x 13700TEU Neo-Panamax container ships, which are planned to feature ammonia or methanol fuel-ready designs.
   
Compared to traditional energy ship fuels, methanol has the characteristics of being free of nitrogen oxides and sulfur, and having low PM emissions. Longspur Research, a clean energy financial services company, released its latest report titled "Methanol and Shipping" earlier this year, stating that methanol is "the best solution right now," with advantages such as mature technology, low conversion difficulty, safe use, convenient bunkering, and low cost, and can significantly reduce emissions.