The enthusiasm of shipping giants to “crazy” shipbuilding remains undiminished. MSC has recently announced that it will order 24 8000TEU dual-fuel container ships. However, as the delivery schedules of large shipyards in China and South Korea are basically full, it was once “hard to find one order” for shipyards, but now it is “hard to find one factory” for shipowners. However, the withdrawal of large main shipyards has also made this large order a “sweet pastry” for second-tier medium-sized shipyards to compete for.
According to trade winds, MSC is in talks with “all” Chinese and Korean shipyards and plans to place an order for 18+6 dual-fuel 8,000TEU container ships, with delivery scheduled before the end of 2025. In terms of the current ship price, the single-ship cost of the 8000TEU dual-fuel ship will be between 110 million and 120 million US dollars, which means that the total order value of Mediterranean Shipping will reach at least 2.64 billion US dollars (about 16.676 billion yuan).
However, sources in the newbuilding market pointed out that given the current market boom and delivery conditions before the end of 2025, it would be difficult for MSC to find a single yard to build all of the ships, and most of the shipyards capable of building such ships have already lined up The delivery schedule until 2025 is fulfilled.
It is said that major domestic large shipyards such as Jiangnan Shipbuilding, Hudong Zhonghua, Waigaoqiao Shipbuilding, and Dalian Shipbuilding Group have no intention of taking orders for such medium-sized container ships. These shipyards are more inclined to obtain ultra-large container ships with higher profit margins, and High-priced LNG ship orders.
On the other hand, the three major Korean shipping companies will undoubtedly offer higher prices for such ships. Hyundai Heavy Industries Group has just received an order for three 7900TEU-class dual-fuel container ships from an Asian shipowner on February 28, with a total contract value of about 3.57 100 million US dollars, equivalent to a single ship cost of 119 million US dollars.
Currently, in China, only three shipyards, Qingdao Beihai Shipbuilding, Guangzhou Shipbuilding International, and New Times Shipbuilding, are still interested in taking orders for medium-sized container ships, but the space for these three shipyards is relatively limited.
Among the above three shipyards, Guangzhou Shipyard International and New Times Shipbuilding have cooperated with MSC. Among them, Guangzhou Shipbuilding International received a total of eight 16,000TEU container ships from MSC last year. This is the first time that Guangzhou Shipbuilding International has received an order to build a container ship. New Era Shipbuilding delivered seven 8800TEU container ships for MSC in 2013. And Qingdao Beihai Shipbuilding won 10 conventional power 5500TEU container ships from CMA CGM last year, which is its first breakthrough in the container ship market.
In South Korea, mid-size shipbuilders Daehan Shipbuilding and K Shipbuilding (formerly STX Offshore & Shipbuilding) are seeking orders for mid-size container ships. However, although the 7000TEU container ship has been designed, Daehan Shipbuilding has no experience in building medium-sized container ships before, and only received orders for 1000TEU feeder ships last year. K Shipbuilding built a neo-Panamax container ship for MSC in the early 2010s and has also developed an 8000TEU-class LNG-powered ship design.
The shipbrokers pointed out that MSC may need to divide its orders to several different shipyards for construction, “Some second-tier shipyards may have earlier delivery schedules and can also accept large orders, but shipowners will not take the risk of inexperienced construction. Shipyards build such container ships because container ships are much more difficult to build than normal bulk carriers.”
According to the International Ship Network, MSC has been active in the new building and second-hand ship market for the past two years, vigorously expanding its fleet, and officially surpassed Maersk at the end of last year to become the world’s largest container shipping company. According to Alphaliner data, MSC‘s fleet currently operates 655 ships with a total capacity of about 4.3086 million TEU, including 298 owned ships and 357 leased ships.
At the same time, MSC also ranks first in the world in the number of orders in hand, with a total of 78 ships of 1.1993 million TEU, accounting for 27.8% of the existing fleet. If these 24 orders take effect, MSC‘s orders will exceed 100 ships.
In the past year, the container shipping giants led by MSC have launched an unprecedented “shipbuilding wave”. A total of 569 4.3 million TEU container ships were ordered last year, 29 percent higher than the previous record of 3.3 million TEU in 2007, according to Clarksons. The proportion of container ship orders in the existing fleet is also as high as 24.87%, second only to LNG ships.
According to Alphaliner‘s data, the current container ship orders have exceeded 6.22 million TEU. If the existing potential orders are confirmed, the hand-held orders will easily exceed the historically high level in 2008, and the proportion of hand-held orders in the existing fleet will also reach 27%.