German liner operator Hapag-Lloyd has contracted Chinese shipbuilder CIMC Raffles to construct eight dual-fuel methanol containerships in a deal valued at more than USD 500 million, marking the company’s first newbuild project utilizing the fuel.
The 4,500 TEU vessels are scheduled for delivery in 2028 and 2029, and will feature state-of-the-art dual-fuel methanol engines capable of achieving up to 30 percent greater efficiency than older ships in the same size class. When operating on methanol propulsion, the fleet is expected to save up to 350,000 metric tons of CO2e annually.
The order represents a significant expansion of Hapag-Lloyd’s alternative fuel portfolio, which currently includes 37 dual-fuel LNG ships either in operation or planned, with the ability to also run on biomethane.
“Continuously modernizing our fleet is firmly anchored in our Strategy 2030,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. “The new ships will help replace older tonnage, further decarbonize the Hapag-Lloyd fleet, and reduce our dependence on the charter market. What’s more, operating these state-of-the-art ships will be much more cost-efficient.”
The company has been positioning itself for methanol operations through several strategic moves. In April 2024, Hapag-Lloyd agreed with Seaspan Corporation to convert five 10,100 TEU containerships to dual-fuel methanol propulsion, with conversions scheduled for 2026 and 2027. More recently, in November 2024, the company secured a supply agreement with Chinese energy producer Goldwind for 250,000 metric tons of green methanol annually.
The green methanol supply, consisting of a mixture of biomethanol and e-methanol, is designed to reduce greenhouse gas emissions by at least 70 percent while complying with current sustainability certifications.
Beyond the eight owned vessels, Hapag-Lloyd has also arranged long-term charters for an additional 14 newbuildings across three size classes: four 1,800 TEU units, six 3,500 TEU ships, and four 4,500 TEU vessels. These chartered ships will be delivered between 2027 and 2029, bringing Hapag-Lloyd’s total investment in vessels under 5,000 TEU to 22 units, as previously announced in November.
The investments align with Hapag-Lloyd’s sustainability targets of reducing absolute greenhouse gas emissions from fleet operations by approximately one-third by 2030 compared to 2022 levels, with net-zero operations targeted for 2045.
With a fleet of 305 modern container ships totaling 2.5 million TEU in transport capacity, Hapag-Lloyd operates 130 liner services connecting more than 600 ports globally. The company employs around 14,000 people in its Liner Shipping segment across 400 offices in 140 countries.
