Hapag-Llyod Doubles LNG Containership Order to 12 Ultra-Large Ships

4 mins read  Sealuminati Team June 24, 2021

Hapag-Lloyd is looking to expand its order with 6 more world's largest containerships. Previously, 6 months earlier, Hapag-Llyod placed its first six ultra-large containerships order. Following which the current expansion order is based. Thus, Hapag-Llyod has 12 containerships, with each having a capacity of over 25,500 TEU in line. However, the total transport capacity of the company is 1.7 million TEU, and the new orders represent 15% of the current total. With these new vessels, Hapag-Lloyd is willing to significantly boost its capacity for trade on the Europe-Far East routes.

Rofl Habben Jansen (CEO, Hapag-Llyod) said that "We want to take another step in the ongoing modernization of our fleet, both in terms of ship size and sustainability, with this investment in new buildings. Simultaneously, we want to meet the persistently high demand while lowering our slot costs. "

The six ultra-large vessels will be built by Daewoo Shipbuilding & Marine Engineering, South Korea. Following the previous sextet order, estimated to be delivered by 2023. The delivery of the new vessels is foreseen to begin in 2024. According to the corporate filing by DSME, the new orders are worth $1 billion, which is no less than the previous order of the same worth in 2020.

The new vessels will be equipped with dual-fuel state-of-the-art high-pressure engines, the same as the previous ones, which Hapag claims would make them more fuel-efficient. Moreover, the vessels will operate on LNG, but sufficient alternative conventional fuel holdings will also be present. Keeping in mind the concern about CO2 and SOX emissions, liquefied natural gas (LNG) has been chosen as a medium-term solution for reducing emissions. On the path to zero emissions, fossil LNG is the most promising fuel, believes Hapag. The medium-term goal is to make artificial natural gas operating vessels in a climate-neutral direction.

To assist the six additional vessels, an $852 million syndicated green loan has been funded. The loan, counting from the date of delivery, will have a maturity of 12 years. The loan was verified by DNV, and the transaction was finalized considering the Loan Market Association's Green Loan Principles.

DNV, in such loan systems, acts as the independent expert in providing secondary party opinions. Green loans are for financing companies, aiming to leverage their environmental performance. Companies can use this to improve their operating measures. The Korea Trade Insurance Corporation (K-SURE), and a conglomerate of 10 banks, back the credit facilities.