CMA CGM’s Groundbreaking Order for LNG Dual-Fuel Containerships

CMA CGM’s Order for LNG Dual-Fuel Containerships

CMA CGM, the world’s third-largest container shipping company, has recently placed an order for a dozen liquefied natural gas (LNG) dual-fuel 18,000 TEU containerships. This significant order, valued at KRW 3.7 trillion (approximately $2.57 billion), marks a pivotal moment in the shipping industry as it paves the way for more sustainable and efficient maritime operations. This article delves into the details of this groundbreaking order, the roles of key players, and the broader implications for the future of shipping.

The order, announced in July 2025, involves the construction of 12 LNG dual-fuel containerships at South Korea’s HD Hyundai Heavy Industries (HD HHI). The contract is valued at KRW 3.7 trillion and is scheduled for delivery by the end of December 2028. This chapter highlights the scale, value, and significance of this order.

The order is part of CMA CGM’s broader strategy to transition its fleet towards more environmentally friendly and cost-effective operations. By investing in LNG dual-fuel technology, CMA CGM aims to reduce its carbon footprint and operational costs. The LNG dual-fuel option allows the vessels to operate on LNG when it is available and switch to heavy fuel oil (HFO) when LNG is not, providing flexibility and cost savings. This strategic move is in line with the industry’s growing focus on sustainability and the increasing demand for eco-friendly shipping solutions [LNG Prime].

The decision to build the containerships in South Korea is strategic for CMA CGM. South Korea is a global leader in shipbuilding and maritime technology, with HD HHI being one of the world’s largest shipyards. This partnership with HD HHI ensures high-quality construction and state-of-the-art technology integration into the vessels. HD HHI’s expertise in building large-scale containerships aligns perfectly with CMA CGM’s requirements, ensuring efficient and reliable operations of the new fleet.

The value of the contract at KRW 3.7 trillion is substantial and reflects the industry’s confidence in CMA CGM’s vision and the potential of LNG dual-fuel technology. The contract amount is approximately $2.57 billion, indicating a significant investment by CMA CGM. This investment is not only about the immediate construction of the vessels but also about future-proofing the fleet with sustainable technology. The delivery timeline of the end of December 2028 provides a clear roadmap for CMA CGM’s fleet expansion and technological upgrade.

HD KSOE and HD HHI’s Role

HD Korea Shipbuilding & Offshore Engineering (HD KSOE) announced it has secured an order worth KRW 3.7 trillion ($2.6 billion) for 12 LNG dual-fuel containerships. This significant order is linked to CMA CGM, a major player in the global shipping industry. The contract, valued at around KRW 3.9 trillion, is HD Hyundai Heavy Industries’ first order of the new year. The estimated price per container is approximately KRW 320 billion. The order is part of HD KSOE’s broader strategy to secure over $18 billion worth of orders in 2025 [Lloyd’s List].

HD Hyundai Heavy Industries (HD HHI), an affiliate of HD KSOE, will be responsible for constructing the 12 LNG dual-fuel containerships. This order marks a significant milestone for HD HHI, as it is the company’s first order of the new year. The ships will be constructed at HD Hyundai Samho and HD Hyundai Heavy, with six vessels at each yard. These vessels are set for delivery by June 2028.

HD KSOE has set a target to secure over $18 billion worth of orders in 2025. This ambitious goal reflects the company’s confidence in its capabilities and market position. The order for 12 LNG dual-fuel containerships from CMA CGM is a significant step towards achieving this target. The company’s performance in 2024, securing $20.56 billion worth of orders, has been a strong indicator of its potential [Lloyd’s List].

CMA CGM’s Fleet Renewal Program

CMA CGM’s fleet renewal program is a cornerstone of the company’s strategy to enhance sustainability and operational efficiency. The program involves replacing older vessels with newer, more environmentally friendly ships. As of now, CMA CGM has ordered a dozen liquefied natural gas (LNG) dual-fuel 18,000 TEU containerships in South Korea. These ships are part of a broader effort to reduce the company’s carbon footprint and align with global sustainability goals. The order, valued at approximately $2.66 billion, marks a significant investment in CMA CGM’s fleet renewal program and underscores the company’s commitment to sustainable shipping practices [Offshore Energy].

CMA CGM’s commitment to achieving net zero carbon across all activities by 2050 is a key driver of its fleet renewal program. The company recognizes the urgent need to reduce greenhouse gas emissions and transition to cleaner fuels. This target is not just a corporate goal but a reflection of the industry’s broader shift towards sustainability [LNG Prime].

The potential of LNG as an alternative fuel is increasingly recognized within the industry. LNG is seen as a viable and cleaner alternative to traditional marine fuels like diesel and heavy fuel oil. It produces significantly lower emissions of sulfur dioxide and nitrogen oxides, making it a more environmentally friendly option. CMA CGM’s investment in LNG-powered vessels is part of a broader strategy to reduce its carbon footprint and align with global sustainability goals [Offshore Energy].

The recent delivery of ten LNG-powered 2,000 TEU ships by HD KSOE’s affiliate HD Hyundai Mipo is a significant milestone in CMA CGM’s fleet renewal program. These ships represent a significant investment in the company’s sustainability efforts and demonstrate its commitment to reducing its carbon footprint. The delivery of these ships marks a significant step towards achieving CMA CGM’s net zero carbon target and highlights the company’s leadership in the transition to cleaner fuels [LNG Prime].

Conclusion

CMA CGM’s order for LNG dual-fuel containerships is a testament to the company’s commitment to innovation and sustainability. The order not only highlights CMA CGM’s strategic vision but also underscores the industry’s shift towards more environmentally friendly and cost-effective shipping solutions. The partnership with HD HHI in South Korea ensures high-quality construction and technological integration, setting a new standard for the shipping industry. The substantial value of the contract and the clear delivery timeline reinforce CMA CGM’s position as a leader in the maritime industry, driving the transition towards a greener and more efficient future for shipping.

Sources

• LNG Prime – CMA CGM plans new LNG-powered containership order
• Lloyd’s List – HD KSOE wins $2.6bn LNG dual-fuel order from CMA CGM
• Hellenic Shipping News – HD HHI Signs LOI with CMA CGM for 12 LNG Dual-fuel containerships
• TradeWinds News – CMA CGM linked to $2.6bn order for raft of LNG dual fuel containerships
• Offshore Energy – CMA CGM books 12-unit-strong LNG dual-fuel