Ordering another 10 13700TEU container ships! ONE continues to expand its fleet

2023-03-17 09:00

Following a "first" order in May last year, ONE (Ocean Network Express) has ordered another 10 new Panamax container ships, continuing its fleet expansion with a target of approximately 150,000 TEU per year.

On March 15, ONE announced that it would order 10 13,700 TEU container ships, with delivery scheduled for 2025-2026. These 10 new vessels will incorporate ammonia and methanol fuel readiness designs, and will also be equipped with a "bow cover" device to reduce wind resistance. Furthermore, ONE has begun discussions with shipyards and equipment suppliers regarding the installation of onboard carbon capture and storage equipment upon delivery.

While ONE did not disclose the specific price or shipyard information, it is reported that the order was received by Nihon Shipyard, a joint venture between Imabari Shipbuilding and Japan Marine United (JMU), with a total investment of approximately 100 billion to 200 billion yen (approximately 5.113 billion to 10.227 billion RMB).

ONE stated that this order is in line with the company's mid-term strategy disclosed in March 2022, and is another new order following the 10 ships ordered last May. By ensuring the stable deployment of the most advanced new container ships, and remaining unconstrained by short-term fluctuations in the container market, the company aims to strengthen its fleet's competitiveness and meet customer needs for establishing and maintaining efficient and reliable supply chains.

It is understood that ONE disclosed a multi-billion dollar fleet expansion plan in March 2022, investing $20 billion in fiscal years 2022-2030, with up to $10 billion allocated to ordering new ships, with an estimated annual investment of 150,000 TEU in new ship construction. The other $10 billion will be invested in other areas such as terminals, technology, and containers.

In May of the same year, ONE signed contracts with Hyundai Heavy Industries of South Korea and Nihon Shipyard in Japan for the construction of 5 13,700 TEU container ships each, with delivery expected in 2025. At that time, industry insiders speculated that each new ship would cost approximately $160 million, with a total value of $1.6 billion (approximately 11.038 billion RMB) for 10 ships.

According to International Ship Network, this is the first time ONE has placed an order for ships as a shipowner. Prior to this, all 38 of ONE's newly built container ships were chartered vessels, including 6 24,000 TEU, 14 15,000 TEU, 8 12,000 TEU, and 10 7,000 TEU container ships, which were delivered and put into operation between 2020 and 2024.

According to ONE's plan, future newbuilds will be able to use hydrogen, ammonia, or methanol as fuel, with the introduction of alternative fuels to be achieved before 2030.

ONE stated that a green strategy is a top priority for management. ONE aims to reduce greenhouse gas emissions by 70% by 2030 and achieve net-zero emissions by 2050. The company is committed to continuing to make necessary investments in green assets and technologies, and, as a leader in decarbonizing the shipping industry, will collaborate extensively with industry stakeholders to achieve decarbonization of maritime transport.

It is understood that ONE was established in 2017 as a container shipping company jointly established by Mitsui O.S.K. Lines, Kawasaki Kisen Kaisha, and Nippon Yusen Kaisha, with current shareholdings of 31%, 31%, and 38%, respectively.

According to Alphaliner data, ONE currently has a fleet size of 204 vessels with approximately 1.5266 million TEU, including 90 owned vessels and 114 chartered vessels, ranking seventh globally in terms of capacity. In addition, ONE has 31 newbuilds under construction totaling 433,930 TEU, with orders on hand accounting for 28.4% of the existing fleet. With the addition of 137,000 TEU, its total capacity will exceed 2 million tons for the first time.

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