Taiwanese shipping company Wan Hai Lines has made a significant move by placing orders for up to twenty methanol dual-fuel container vessels at shipyards in South Korea and Taiwan. On August 12, 2024, Wan Hai Lines (Singapore) signed a letter of intent (LOI) for twelve of these vessels, each with a capacity of around 8,000 TEU. This LOI also includes options for an additional four units. The vessels will be constructed by CSBC Corporation in Taiwan, with each unit priced between $102.5 million and $124 million, leading to a total transaction value ranging from $1.23 billion to $1.98 billion.

Additionally, on the same day, Wan Hai Lines signed another LOI for four 8,700 TEU methanol dual-fuel boxships. These vessels will be built at HD Hyundai Samho shipyard in South Korea. The cost per vessel will range from $113.5 million to $130.41 million, with the overall transaction estimated to be between $454 million and $521.64 million.

This marks the first time Wan Hai Lines has ordered vessels with dual-fuel propulsion, opting for methanol as the marine fuel of choice. This strategic decision aligns Wan Hai with other major shipping companies like Maersk, Ocean Network Express (ONE), and Evergreen Marine, who have also chosen methanol as a cleaner fuel alternative.

In a related development, Maersk recently added its third large dual-fuel methanol-enabled containership to its fleet. The vessel, named Antonia Maersk, was launched on August 9, 2024, during a ceremony in Aarhus, Denmark, hosted by Danish wind power giant Vestas.

The growing trend towards methanol as a marine fuel is driven by several factors. There is increasing demand for methanol as a clean alternative fuel, supported by significant investments in production and bunkering infrastructure. Additionally, tighter emission regulations in the European Union and globally are pushing the shipping industry toward more sustainable fuel options. The global order book for methanol-fueled vessels is expanding, and there is a noticeable rise in ship conversions to methanol propulsion.

Beyond the container ship segment, new orders for methanol-powered vessels are emerging in other maritime sectors, including tankers, bulk carriers, passenger ships, and cruise vessels. The offshore wind industry is also seeing an increase in orders for vessels equipped with methanol engines, reflecting the growing popularity of this fuel. The shift towards methanol highlights a broader industry trend towards adopting more sustainable and environmentally friendly marine fuels.

Wan Hai Lines, Ltd., has grown to become one of the largest players in the container shipping industry.