MSC places orders for 20 new ultra-large container ships at the Hengli shipyard in China, resuming its fleet expansion program. The company has signed firm contracts for ten vessels with a capacity of 20,000 TEU, equipped with dual-fuel LNG engines, as well as an option for ten more ships of a similar class.

Fleet Expansion and New Orders

According to estimates, if all orders and options are exercised, MSC’s newbuilding program will increase by 400,000 TEU, reaching a total of 2.39 million TEU across 146 vessels. Should orders reach 2.8 million TEU, the share of ordered ships compared to the current fleet will rise from 32% to over 38%.

Currently, MSC’s fleet consists of 1,001 vessels with a combined capacity of 7.39 million TEU, of which 754 are owned ships providing 4.7 million TEU, and 247 are chartered vessels accounting for 2.64 million TEU. Thus, the company’s order book slightly exceeds the total capacity of its chartered fleet.

Standardization and Optimization Strategy

The majority of MSC’s newbuilds have a capacity of over 10,000 TEU, with the company favoring ULCVs around 21,000 TEU. There is ongoing work to revise some orders to increase the capacity of certain ships from 18,000 TEU to even larger sizes, aiming to standardize the future core fleet around a compact class of highly optimized vessels with capacities exceeding 21,000 TEU.

Cooperation with Hengli Shipyard

Hengli has become the main shipyard for MSC’s new orders following a cooperation agreement signed last year, which covers shipbuilding, engine manufacturing, repair, and modernization. If the new orders are confirmed, MSC’s portfolio at Hengli could grow to 40 vessels plus ten options, including ten megamax ships of 24,000 TEU and 30 vessels of approximately 20,000–21,000 TEU.

Additional Orders and Long-Term Charters

There are reports of an order for five ships with a capacity of 6,200 TEU through Global Ship Lease (GSL). These next-generation container ships, featuring high reefer capacity and wide beams, are valued at around $413 million. After delivery from the shipyards, scheduled for 2029, the vessels will operate under long-term charters with an average duration of 8.1 years.

All five GSL vessels have been ordered based on long-term charter commitments to one of the major ocean carriers. The first ten ships under this fleet renewal program will join MSC on long-term charters. There is currently no information on whether MSC will be behind the next five vessels.