Another 10 vessels! Chinese shipyards secure major order! Container shipping giants “have no choice”

“Beyond expanding our fleet through new orders, we have no other choice.” — CMA CGM, the world's third-largest container shipping giant, is accelerating its green fleet development to surpass Maersk and secure a top-two global position.

Recently, CMA CGM formally signed a contract with Dalian Shipbuilding Industry for the construction of 10 LNG dual-fuel 22,000 TEU ultra-large container vessels. The new vessels are scheduled for delivery between 2028 and 2029, with each ship costing approximately $210 million, totaling around $2.1 billion (approximately RMB 15.619 billion).

Last week, Dalian Shipbuilding announced it had secured an order for 10 dual-fuel ultra-large container ships from a European shipowner, further solidifying its leading position in the large-scale clean energy vessel sector. Although Dalian Shipbuilding did not disclose the owner's identity at the time, sources indicate the order originated from CMA CGM. Clarkson data confirms all ten vessels will be constructed by Dalian Shipbuilding's Tianjin facility.

For reference, Clarkson data shows the current newbuilding price for a 22,000/24,000 TEU dual-fuel LNG-powered container ship stands at approximately $271 million, slightly below last year's $273 million.

Sources indicate that CMA CGM's newbuilds may adopt C-type fuel tanks instead of the conventional membrane-type tanks, a modification expected to reduce each vessel's construction cost by approximately $15 million.

This order sets a new record for Dalian Shipbuilding in container ship construction. According to Clarkson data, Dalian Shipbuilding's largest container ships delivered to date are the two 20,000 TEU vessels “COSCO Shipping Gemini” and “COSCO Shipping Libra,” built for COSCO Shipping Group and delivered in 2018. Originally powered by conventional fuels, these vessels have since been retrofitted for methanol dual-fuel propulsion.

CMA CGM is a long-standing client of Dalian Shipbuilding. As early as 2022, Dalian Shipbuilding secured CMA CGM's first order for six 15,000 TEU methanol dual-fuel container ships. This marked CMA CGM's inaugural order for methanol dual-fuel vessels and Dalian Shipbuilding's first construction of methanol-powered container ships. These six vessels are scheduled for delivery over the next two years.

This latest order marks CMA CGM's first order for ultra-large container ships exceeding 20,000 TEU in two years and its third major container ship order this year. Earlier this year, CMA CGM placed orders for 12 dual-fuel LNG-powered 18,000 TEU container ships with HD Korea Shipbuilding & Offshore Engineering and Kangnam Shipbuilding.

Including the latest order, Alphaliner data shows that CMA CGM currently has 132 new vessels under construction, with a total capacity exceeding 1.8 million TEU. This places it second globally behind Mediterranean Shipping Company (MSC), which has 122 vessels under construction with a total capacity of 2.15 million TEU. Upon delivery of all existing orders, CMA CGM will surpass Maersk to become the world's second-largest container shipping company.

CMA CGM Chief Financial Officer Ramon Fernandez stated that by 2029, the company expects to operate over 160 dual-fuel vessels. When including both owned and chartered ships, its total dual-fuel fleet will exceed 200 vessels.

Fernandez explained that CMA CGM's extensive newbuilding program “is not just about market share.” He emphasized: “All our newbuilds are dual-fuel vessels. The entire shipping industry must collectively advance decarbonization, and we can only achieve this with green vessels. Older ships must be replaced by vessels powered by low-carbon alternative fuels—there is no other option.”

CMA CGM ranks among the container shipping companies investing most heavily in dual-fuel vessel orders, having set a target to achieve net-zero emissions by 2050. In 2024, the company took delivery of 12 newly built LNG dual-fuel container ships. According to data disclosed in CMA CGM's 2024 annual financial report, the company has invested nearly $20 billion (approximately RMB 141.991 billion) to order 153 dual-fuel vessels. These new ships can operate on low-carbon fuels such as biomethane, bio-methanol, and synthetic fuels, with deliveries scheduled to commence by 2029.

Beyond its Dalian Shipbuilding order, CMA CGM signed a letter of intent with India's Cochin Shipyard Limited (CSL) in October to build six 1,700 TEU dual-fuel LNG-powered feeder container vessels, becoming the first shipping giant to order such vessels from an Indian shipyard.

Additionally, CMA CGM is considering container ship construction in the United States. Earlier this year, the company announced a $20 billion investment over the next four years to enhance U.S. maritime, logistics, and supply chain capabilities, thereby boosting the nation's maritime economic development and shipbuilding capacity. Fernandez confirmed ongoing discussions with U.S. government agencies to explore conditions for building a portion of its fleet domestically.

According to the latest data from Alphaliner, CMA CGM currently operates a fleet of 706 container ships, comprising 347 owned vessels and 359 chartered vessels, with a total capacity of approximately 4.08 million TEU. This ranks the company third globally with a market share of 12.3%.

In the third quarter of this year, CMA CGM's revenue reached $14.04 billion, a year-on-year decrease of 11.3%. EBITDA stood at $2.96 billion, down 40.5% year-on-year. The EBITDA margin was 21.0%, a decrease of 10.4 percentage points. Net profit was $750 million, down 72.6% year-on-year.

Specifically, CMA CGM's maritime business generated revenue of $8.964 billion in Q3, down 17.4% year-on-year; EBITDA reached $2.228 billion, down 48.8% year-on-year. During the same period, cargo volume increased by 2.3% to 6.17 million TEUs. Average revenue per TEU was $1,452, down 19.2% year-on-year. CMA CGM specifically noted that achieving cargo volume growth amid market volatility demonstrates the company's strong ability to flexibly deploy assets and capture demand.