Another 8 large vessels! Orders hit a new record high! Chinese shipbuilders emerge as the biggest winners.

P&T Terminals has once again launched a new round of fleet expansion and renewal, continuing to ramp up investments in LNG dual-fuel container ships. Since the beginning of this year, new orders for container ships have once again broken historical records, with Chinese shipyards securing a staggering 72% of the orders, further increasing market concentration.

According to TradeWinds, P&T plans to order 4 to 8 LNG dual-fuel 13,000 TEU container ships and issued a tender in November requesting quotes from Chinese and Korean shipyards. Participating shipbuilders include Yangtze River Shipbuilding, Guangzhou Shipyard International, Hudong-Zhonghua Shipbuilding, Jiangnan Shipyard, China Merchants Shipbuilding Industry, as well as South Korea's HD Hyundai Heavy Industries and Hanwha Ocean (formerly Daewoo Shipbuilding). The relevant construction contracts are expected to be finalized early next year.

Shipbrokers generally believe that PIL's newbuildings may not be delivered until 2029, as most shipyards have fully booked their 2028 delivery slots. Even Chinese shipyards face limited availability for earlier construction schedules.

Depending on specifications, each LNG dual-fuel 13,000 TEU container ship costs approximately $160 million to $180 million. Should PIL ultimately order eight vessels, the total investment would amount to at least $1.28 billion (approximately RMB 9.02 billion). Last month, South Korea's HMM ordered 12 LNG dual-fuel 13,400 TEU container ships from HD Hyundai and Hanwha Ocean, with each vessel costing approximately $182 million.

For reference, Clarkson data indicates that the current newbuilding price for a 13,000-14,000 TEU LNG dual-fuel container ship is approximately $172.5 million, representing a 6% decline from $183 million during the same period last year.

Since 2022, Pacific International Lines has consistently invested in ordering LNG dual-fuel vessels, having now placed orders for 20 LNG dual-fuel container ships with three Chinese shipyards. These include four 14,000 TEU vessels from Jiangnan Shipyard, four 8,000 TEU vessels from Yangtze River Shipbuilding, and seven 13,000 TEU plus five 9,000 TEU vessels from Hudong-Zhonghua. All eight vessels from Jiangnan and Yangtze River Shipbuilding have been delivered.

In August last year, P&T Shipping ordered five 13,000 TEU dual-fuel vessels from Hudong-Zhonghua, each costing over US$190 million. In November, P&T returned to Hudong-Zhonghua to order five more 9,000 TEU dual-fuel vessels, reportedly priced slightly above US$140 million each. This July, P&T placed an additional order for two more vessels of the same type.

P&O Line was founded in 1967 by Mr. Zhang Yunzhong, an overseas Chinese entrepreneur. It is now Southeast Asia's largest locally owned shipping company and ranks among the world's top 12 container shipping lines. The company operates a fleet of approximately 100 container vessels, providing shipping services and solutions to customers in over 500 destinations across more than 90 countries worldwide. Its operations focus on China, Asia, Africa, the Middle East, Latin America, Oceania, and the Pacific Islands.

According to the latest data from Alphaliner, P&T currently operates a fleet of 100 vessels, comprising 82 owned ships and 18 chartered vessels, with a total capacity of approximately 440,000 TEU. This ranks it 12th globally with a market share of 1.3%. Additionally, PIL has 23 newbuild vessels under construction, totaling 220,000 TEU, representing 50.6% of its existing capacity.

This year, against the backdrop of a global decline in new ship orders, the container ship newbuilding market has remained exceptionally active, showing remarkable momentum. Shipping companies continue to demonstrate strong demand for large vessels, while interest in feeder vessels has also significantly increased in recent months. Driven by high charter rates and fleet renewal needs, numerous container shipping companies have placed orders for medium and small-sized vessels.

Last week, COSCO Shipping Group placed an order for 12 LNG dual-fuel 18,000 TEU vessels at Jiangnan Shipyard. German carrier Hapag-Lloyd also announced a contract with CIMC Raffles for the construction of eight 4,500 TEU methanol dual-fuel container ships. Including these new orders, Linerlytica data shows that global container ship orders this year have reached 633 vessels totaling 5.08 million TEU, surpassing both 2021 (4.74 million TEU) and 2024 (4.77 million TEU) to set a new historical record.

Measured by TEU, Chinese shipyards have secured 72% of this year's global container ship orders, demonstrating exceptional performance. In its latest report, shipbroker Braemar stated: “The surge in orders for feeder container vessels at Chinese yards shows no signs of cooling. The only apparent constraint is the availability of shipyard berths.”

This unprecedented “order surge” has sparked industry concerns about future market overcapacity. Filipe Gouveia, Head of Shipping Analysis at the Baltic International Maritime Council (BIMCO), pointed out that current container ship orders represent a staggering 33% of the existing fleet, expressing worry over the massive new capacity set for concentrated delivery.

Gouveia stated: “From a supply-demand balance perspective, the massive order backlog for container ships is one of our primary concerns. Especially with the Red Sea/Suez Canal route returning to normal operations, the container shipping sector faces the greatest risk of demand contraction.” He further predicted that over the next five years, capacity growth in the container shipping market will continue to outpace demand growth.