The German shipping company Hapag-Lloyd has signed a contract with the Chinese shipbuilder CIMC Raffles to build eight dual-fuel methanol container ships. This project is worth over $500 million and represents Hapag-Lloyd's first new construction using this type of fuel.
The new ships, each with a capacity of 4,500 TEU, are set to be delivered in 2028 and 2029. They will be equipped with modern dual-fuel methanol engines, which can be up to 30 percent more efficient than older vessels of the same size. By using methanol for propulsion, this fleet is expected to save around 350,000 metric tons of CO2 emissions each year.
This order significantly boosts Hapag-Lloyd's range of eco-friendly fuel options. Currently, the company has 37 dual-fuel LNG ships, either in operation or planned, which can also run on biomethane.
Rolf Habben Jansen, CEO of Hapag-Lloyd AG, stated, “We are committed to continually modernizing our fleet as part of our Strategy 2030. These new ships will replace older vessels, further decarbonize Hapag-Lloyd's fleet, and lessen our reliance on the charter market. Additionally, operating these advanced ships will be more cost-effective.”
To prepare for methanol operations, Hapag-Lloyd has made several strategic decisions. In April 2024, they reached an agreement with Seaspan Corporation to convert five 10,100 TEU container ships to dual-fuel methanol, with the conversions planned for 2026 and 2027. More recently, in November 2024, they secured a contract with the Chinese energy firm Goldwind to provide 250,000 metric tons of green methanol each year.
This green methanol, a blend of biomethanol and e-methanol, aims to cut greenhouse gas emissions by at least 70% while meeting current sustainability standards.
Apart from the eight new ships, Hapag-Lloyd has also arranged long-term leases for an additional 14 new vessels in three size categories: four with a capacity of 1,800 TEU, six at 3,500 TEU, and four with 4,500 TEU. These chartered ships are expected to be delivered between 2027 and 2029, increasing Hapag-Lloyd's total investment in vessels under 5,000 TEU to 22, as previously reported in November.
These investments align with Hapag-Lloyd's sustainability goals, which include a reduction of greenhouse gas emissions from fleet operations by about one-third by 2030 compared to 2022 levels. The company aims for net-zero emissions by 2045.
Hapag-Lloyd currently operates a fleet of 305 modern container ships with a total capacity of 2.5 million TEU. They run 130 shipping routes, connecting more than 600 ports worldwide and employ roughly 14,000 people across 400 offices in 140 countries.