Hapag-Lloyd Pursues Strategy to Add Feeders that Improve Efficiency

Hapag-Lloyd is moving forward with its corporate strategy to expand its fleet of feeder containerships that will enhance the efficiency and environmental performance of the fleet. Feeders have taken on an increasing importance as the carrier is part of the new Gemini Cooperation with Maersk that is built around a network of feeders and hub ports for the liner service between Asia and Europe.

The carrier announced last week that it had ordered eight 4,500 TEU containerships at an investment of more than $500 million. Further, Hapag said it had decided to add another 14 newbuilds, meaning it would add a total of 22 new vessels, each with a capacity of less than 5,000 TEU. It said it would include four 1,800 TEU and four 4,500 TEU vessels on long-term charters. It will also charter six 3,500 TEU vessels.

Hapag cites that the strategy replaces older tonnage while also reducing its dependency on the charter market. As they are new ships, they will also be more cost-efficient and designed to take advantage of new emission reduction technologies and fuels.

The company’s newbuild order was placed with the Chinese shipyard CIMC Raffles for the eight 4,500 TEU vessels. They will be delivered in 2028 and 2029, and they will be the company’s first newbuilds equipped with dual-fuel methanol engines.

Hapag reports these new ships will be up to 30 percent more efficient than older ships of the same size class. They will be able to save up to 350,000 metric tons of CO2 per year when using methanol propulsion.

The move into methanol follows an agreement in April 2024 with Seaspan to retrofit in 2026 and 2027 five 10,100 TEU vessels under charter to dual-fuel methanol propulsion. In anticipation, Hapag-Lloyd in November 2024 also entered a supply agreement with China’s Goldwind for 250,000 metric tons of green methanol per year.

MPC Container Ships of Norway announced another order on December 16, saying the vessels would be under a long-term charter, which reports linked to Hapag. It contracted for six 3,700 TEU vessels to be built by China’s Taizhou Sanfu Ship Engineering. The company reports it will invest $292.5 million and over the 10-year charter expects $479 million in revenue and around $288 million in EBITDA. The initial charter is for 10 years with extension options.

The ships, which will start delivery in the second half of 2028, will employ a design that optimizes speed and fuel consumption for regional and feeder trades. They, however, will be flexible to shift between trade lanes as the markets evolve. The ships will be prepared for alternative fuels and advanced emissions-reduction technologies.

Hapag-Lloyd emphasized that the new ships are part of its overall commitment to be a driver of sustainability in container shipping. It highlights that it currently has in service or planned a total of 37 vessels that are dual-fuel LNG powered, which can also operate using biomethane.

These orders are rounding out a record year for containership orders. The sector is leading the drive toward alternative fuels in commercial shipping and employing new technologies. For the first time, the sector’s total orderbook is topping 5 million TEU of capacity, leading to speculation of potential overcapacity and a resulting acceleration in disposing of the oldest, less efficient tonnage.