OOIL splashes US$2.22Bn on 12 LNG dual-fuel box ships

Orient Overseas (International) Limited (OOIL), parent company of Orient Overseas Container Line (OOCL), has placed an order for 12 LNG dual-fuel 13,600-TEU container vessels at Hudong-Zhonghua Shipbuilding (Group).

The integrated container transport and logistics services provider revealed that its 12 subsidiaries signed shipbuilding contracts on 29 April with Hudong-Zhonghua and China Shipbuilding Trading, both units of China State Shipbuilding Corporation (CSSC). The contracts are valued at around US$185M per vessel or US$2.22Bn in total.

The box ships are scheduled for delivery between Q3 2028 and Q1 2030, subject to contractual provisions on delivery delays. On completion, they will become the first LNG-powered vessels in OOCL’s fleet. OOCL has previously opted for methanol dual-fuel propulsion for its container ships, as Riviera reported.

Equipped with LNG dual-fuel technology, the ships will support emissions reduction and limit exposure to carbon costs, reflecting tightening regulatory requirements and growing customer demand for lower-carbon transport. Their larger capacity is also set to deliver economies of scale, reducing per-container costs and enhancing competitiveness.

According to OOIL, the order follows a strategic review of environmental regulations, alternative fuel pathways, and fuel supply feasibility. The move aligns with the company’s strategy to expand fleet capacity, strengthen its market position, and support the long-term sustainable growth of its global liner business.

Tao Weidong, OOCL chief executive, said the 12-ship order reflects OOCL’s commitment to supporting the green transition and sustainable development of the shipping industry, while also ensuring flexibility in vessel types and diversification of the fleet.

Specifically, the new vessels are designed for flexible deployment across multiple trades and terminals, with high reefer capacity to meet diversified cargo demand. Their addition is expected to optimise the fleet profile, widen service coverage, and reinforce the group’s presence on key routes.

OOIL was acquired in 2018 by container shipping giant COSCO Shipping in a US$6.3Bn deal. The acquisition reflected a broader trend of consolidation in container shipping, resulting in fewer, larger players with greater pricing power and global reach. COSCO Group is currently the world’s fourth-largest container shipping company, operating a fleet of 554 vessels, according to Alphaliner’s Top 100 ranking.