Recently, Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (“CIMC SOE”), a subsidiary of CIMC Enric, successfully signed orders for 2 + 2 1450TEU-class LNG dual-fuel container vessels with a total contract value of more than RMB1 billion, marking that it officially entered the container market of clean energy as fuel.

CIMC SOE Factory

As a new generation of environment-friendly feeder container vessel, the vessel type adopts LNG dual-fuel and is equipped with MAN high-pressure dual-fuel engine, which effectively reduces operational pollution emissions and greenhouse gas emissions. The ship type is the world’s first three-in-one C-type fuel tank, which can effectively save cabin capacity and improve the overall economic performance of the ship. The conceptual design of the ship type is provided by the German design partner, and the LNG gas supply system (FGSS) will be independently designed by CIMC SOE. The ship will be delivered to the customer after its overall construction is completed by CIMC SOE.

Shipbuilding demand has been strong since the beginning of this year, and the China Newbuilding Price Index (CNPI) continued to rise in April 2023. On one hand, according to the CNPI Market Report, CNPI reported 1,035 points in April, up 8 points quarter-on-quarter. The index has been growing for three consecutive months, marking that a large number of orders emerged. On the other hand, the price of steel, as a major component of shipbuilding costs, has been on the downward trend since early April, but the shipbuilding price has kept rising, reflecting the strong short-term shipbuilding demand and the increase in ship prices against the trend.

According to the Review of Maritime Transport 2022, the current average age of container vessels is 13.7 years. The last wave of ship delivery peak period is about 2005 to 2012. With a life cycle of about 20 years, the ship industry will usher in a huge demand for replacement, and the shipbuilding industry will start a long-term prosperity cycle.

At the same time, the introduction of new environmental protection regulations is accelerating the replacement of old vessels. On January 1, 2023, the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) came into effect, both of which are new environmental regulations of the International Maritime Organization (IMO). According to the statistics of Vessel Value, based on EEXI alone, capacity of nearly 70% of the global mainstream shipping market still fails to meet the standards, and the CII carbon index requirement is more demanding.