Evergreen Expands Fleet by Nearly $3 Billion with Order for 14 New LNG-Fueled Vessels
Evergreen Expands Fleet by Nearly $3 Billion with Order for 14 New LNG-Fueled Vessels
Taiwan-based Evergreen Marine has announced a significant investment package to expand its global container shipping fleet. The company has confirmed orders for a total of 14 LNG-fueled container vessels of 14,000 TEU. The total value of the order is estimated to be between $2.45–2.9 billion.
The new vessels will be divided between two major shipyards:
7 vessels will be built by Samsung Heavy Industries in South Korea.
7 vessels will be produced at Guangzhou Shipyard International facilities in China.
The cost per vessel is estimated between $175–205 million, as stated in Evergreen's official disclosure to the Taiwan Stock Exchange. This move formally confirmed rumors that had been circulating in broker circles in recent months regarding the company's plan to place a major newbuilding order.
Evergreen's Capacity Exceeds 2.7 Million TEU
According to fleet data from Sea-web, the sister organization of S&P Global, Evergreen's total fleet will reach 2,747,549 TEU with these orders. This figure continues to position the company at the upper echelons of global liner rankings and further intensifies the ongoing competition among mega-fleets, particularly since the mid-2020s.
The new LNG-fueled vessels represent a significant step forward for Evergreen in environmental performance and fuel efficiency. LNG is regarded across the sector as the most practical "transition fuel" in the short to medium term, alongside methanol and biofuel options.
Order Significance: Environmental Compliance, Capacity, and Strategic Strengthening
This order package stands out in three respects:
1) Environmental Compliance and Emissions Strategy
LNG-fueled vessels, compared to conventional heavy fuel-oil powered ships:
Reduce CO₂ emissions by up to 20%,
Achieve dramatic reductions in NOₓ and SOₓ emissions,
Lower particulate emissions
Evergreen is increasingly focusing on LNG vessels in its fleet, particularly to comply with EU ETS and IMO CII regulations.
2) Strengthening in the Mid-Size Segment
The 14,000 TEU class vessels offer an optimal balance of capacity and flexibility on Asia–Europe and trans-Pacific routes. Rather than focusing on 20,000+ TEU megamax vessels, Evergreen is concentrating on this segment to achieve better capacity management during volatile demand periods.
3) Samsung Heavy and GSI Collaboration
Dividing the order between two countries not only accelerates the delivery timeline but also strengthens:
Price competition,
Technological diversity,
Mitigation of geopolitical risk in the supply chain
factors.
Market Impact: Evergreen Not Backing Down in Capacity Race
Given MSC's surpassing of 7 million TEU and the aggressive fleet investments by Asia-based lines such as ONE, Evergreen, and HMM, Evergreen's order is viewed as a move to maintain its competitive position.
At the same time, the LNG investment demonstrates that the company is pursuing a gradual strategy in transitioning to methanol and alternative fuels. These vessels will be designed to be compatible with bio-LNG or synthetic LNG in the future.
Key Points:
Evergreen placed an order for 14 LNG-fueled 14,000 TEU vessels.
Total cost is in the range of $2.45–2.9 billion.
Total fleet capacity: 2,747,549 TEU.
Orders are divided between Samsung Heavy and Guangzhou Shipyard.
LNG vessels are central to Evergreen's emissions strategy.
The company aims to enhance global flexibility through mid-size vessels.
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Author: SedatOnat.com
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