CSSC, CMA CGM ink deal for methanol and LNG-powered box ships 

This order – said to be the largest ever placed for container ships in China – consists of a dozen 15,000-TEU methanol-fuelled container ships and four 23,000-TEU LNG-fuelled ships, in a deal worth approximately US$3Bn.

The orders are reportedly spread across three China State Shipbuilding Corp (CSSC) yards. CSSC Dalian Shipbuilding Industry and CSSC Jiangnan Shipyard will each build six of the 12 methanol-fuelled ships. The four mega box ships will be built by CSSC Hudong-Zhonghua Shipbuilding.

CSSC said CMA CGM has ordered more than 70 container ships form the shipyard, including the LNG dual-fuelled 23,000-TEU container ship CMA CGM Jacques Saade.

CMA CGM chairman Rodolphe Saadé was quoted as saying the newbuildings will be delivered in 2025 and 2026 and will replace CMA CGM’s older ships. 

The order was signed as part of a range of agreements by French companies during a state visit by French President Emmanuel Macron and European Commission President Ursula von der Leyen.

Chinese state media reported that CMA CGM signalled its intention to order up to 10 more LNG dual-fuelled 23,000-TEU vessels. 

Environmental non-profit Pacific Environment said the new ship orders puts CMA CGM "ahead in the zero-emissions ocean shipping race" but said the line "still trails Maersk in reducing its LNG fleet". Pacific Environment made its statements in conjunction with the Ship It Zero Coalition that includes major retailers such as IKEA, Target and Amazon.

CMA CGM is the primary freight carrier for US-based retail behemoth Walmart, which Pacific Environment said was "the worst ocean shipping polluter in 2021". 

IKEA, Target and Amazon have made commitments to move their goods on ships by 2040, but Walmart has made no such commitment. 

"Walmart told Canary Media earlier this year it is working to reduce or avoid 1Bn tonnes of greenhouse gas emissions in the global value chain by 2030," Pacific Environment said. 
According to Pacific Environment, Walmart said, "​Reducing emissions from ocean carriers is a priority for Walmart, and we work closely with logistics partners, NGOs and suppliers across the retail industry to scale up more sustainable approaches to transporting products.”

Box ships grabbed the largest slice of 2022 LNG and methanol orders. According to a 2022 round up of order figures from DNV’s Alternative Fuels Insight platform, 74% of 222 LNG ship orders were for container vessels and pure car and truck carriers. Out of 35 methanol-powered ships ordered, 30 were box ships.