Dual-fuel container ships to sail between 2027 and 2029
German logistics giant Hapag-Lloyd has announced an investment in dual-fuel container ships. The shipping company plans to buy 24 new vessels at a total cost of US$4 billion. China’s Yangzijiang Shipbuilding and New Times Shipbuilding will build the containerships. The fleet renewal will take place between 2027 and 2029.
The investment will provide Hapag-Lloyd with an additional 312,000 TEU in fleet capacity. Under the agreement, Yangzijiang Shipbuilding will build ships with a total capacity of 16.8 thousand TEU and New Times Shipbuilding will build boats with a total capacity of 9.2 thousand TEU.
Fleet renewal is part of the company’s overall development strategy until 2030. Hapag-Lloyd representatives believe that modern ships with dual-fuel engines will reduce carbon dioxide emissions. The new vessels can run on biofuel and ammonia, so the operator will be able to reduce emissions by around 95% compared to current levels.
CEO Rolf Habben Jansen said that this investment confirms Hapag-Lloyd’s commitment to climate sustainability. The fleet modernisation is a step towards carbon neutrality and the transition to sustainable shipping. Moreover, modernised container ships will help the company strengthen its competitiveness. The use of different fuels will provide greater operational flexibility and responsiveness to market changes.
Hapag-Lloyd has already invested in the modernisation of its ships’ engines. Some of them now use methanol, which also helps to reduce CO2 emissions. The company supports climate initiatives and plans to achieve zero emissions by 2045.
About the company
Hapag-Lloyd is the world’s fifth-largest container line in terms of vessel capacity. The company was formed in 1970 through the merger of two transport companies. Since then, the shipping giant has undergone dramatic changes. Its M&A strategy has played an important role in achieving scale. Key deals:
- In 2005, the company acquired CP Ships Limited of Canada for US$2 billion, making it the fifth-largest in the world in terms of fleet capacity.
- In 2014, the operator acquired Chile’s CSAV, making it the world’s fourth-largest container shipping company.
- The merger with UAE-based UASC took place in 2017, considerably expanding Hapag-Lloyd’s capabilities.
- Nile Dutch Investments joined the group in 2021. The company was a leader in container shipping in West Africa.
Hapag-Lloyd’s main routes are Latin America and the Middle East. In addition to cargo transport, the company is developing a cruise business.
