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Orderbook of Dual fuel Ships Continue to Expand Hapag Lloyd places order for 14 dual Methanol-capable Boxships

24
Nov

Hamburg-based liner operator Hapag‑Lloyd has confirmed firm orders with two Chinese yards for at least 14 container vessels equipped with methanol-dual-fuel propulsion. Worldwide, more than 350 container-ships and vehicle carriers with dual-fuel capability are now in operation. Methanol is now a credible decarbonisation option.

According to shipbroker Intermodal, six 3,500 TEU units will be built at Taizhou Sanfu Ship Engineering, and eight 4,500 TEU units at Yantai CIMC Raffles Offshore. The Taizhou contract includes an option to add four more vessels; the Yantai contract includes an option for six further ships.

Financially, Hapag-Lloyd is expected to pay ~US $60 million per vessel for the smaller units, and about US $70 million each for the larger ones. Delivery dates have not yet been disclosed.

The vessels will feature methanol-capable dual-fuel propulsion systems. Methanol, particularly the bio- or “e-” variety produced from renewable sources, is touted for emission reductions of 60-95 % in CO₂ and over 95 % in sulphur oxides (SOₓ) and particulate matter (PM). By contrast, standard (grey) methanol offers more modest CO₂ reductions of roughly 7-10 %.

Hapag-Lloyd has already been active in the methanol space: in April 2024, it teamed up with Hong Kong’s Seaspan Corporation to retrofit five 10,100 TEU conventional vessels with methanol-capable engines, and in November 202,4 agreed with China’s Goldwind for delivery of 250,000 tonnes of green methanol per year.

Dual-fuel shipping in 2025: Orderbook Continue to Expand

The orderbook for dual-fuel vessels – i.e., ships able to burn an alternative fuel such as methanol or LNG – continues to expand, but signs of a plateau are emerging:

  • According to World Shipping Council data, as of September 2025, more than 350 container ships and vehicle carriers with dual-fuel capability are in operation (up from ~180 in September 2024). Container-ship orders now show roughly 80 % of TEU capacity being dual-fuel capable.
  • Yet an analysis by Alphaliner shows that although 72 % of new-build orders in the first ten months of 2025 are for alternative-fuel ships, growth in dual-fuel contracting has slowed.
  • The largest recent contract was announced in April 2025: COSCO Shipping Holdings ordered 14 methanol-dual-fuel 18,500 TEU container vessels in a US$3.1 billion deal.
  • Another key deal: Yang Ming Marine Transport Corporation signed for six 8,000 TEU methanol dual-fuel-ready ships, scheduled for delivery beginning in 2028.
  • Technical and safety frameworks are advancing: in October 2025, the Maritime Technologies Forum (MTF) published guidelines for inspection of methanol-dual-fuel ships, reflecting growing regulatory and industry attention to methanol safety and operations.

Methanol is Now a Credible Decarbonisation Option

  • Methanol is now a credible part of the liner shipping decarbonisation toolkit, not just LNG.
  • While infrastructure and fuel-supply constraints remain a challenge, the growing orderbook suggests shipowners are committing to longer-term alternative-fuel readiness.
  • The fact that Hapag-Lloyd is placing orders at two Chinese yards suggests a search for competitive new-build pricing even in the alternative fuels space.
  • The plateauing growth in new dual-fuel orders signals caution: fuel-supply, regulatory clarity and bunkering infrastructure remain unresolved variables.

Fuel Production, Bunkering Port Need to Catch Up

Going forward, the successful delivery and operation of these vessels will hinge on access to green (bio- or e-) methanol bunkering, cost competitiveness vis-à-vis traditional fuels, and alignment with regulatory regimes such as the FuelEU Maritime regulation in the EU – which sets carbon-intensity standards. The Hapag-Lloyd order is a concrete step, but many of the broader ecosystem levers – fuel production, bunkering ports, regulatory certainty – must catch up to allow full value realisation.

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