Singapore's Pacific International Lines (PIL) Launches New Round of Fleet Expansion and Renewal, Continues Investment in LNG Dual-Fuel Container Ships
This year, new orders for container ships have once again set a historical record, with Chinese shipyards securing 72% of these orders, further increasing market concentration. According to TradeWinds, PIL plans to order 4 to 8 LNG dual-fuel 13,000 TEU container ships and issued a tender in November, inviting bids from Chinese and Korean shipyards. Participating shipyards include Yangzijiang Shipbuilding, Guangzhou Shipyard International, Hudong-Zhonghua Shipbuilding, Jiangnan Shipyard, China Merchants Industry, as well as South Korea's HD Hyundai Heavy Industries and Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering). The construction contracts are expected to be finalized early next year.
Shipbrokers widely believe that PIL's new ships may not be delivered until 2029, as most shipyards' delivery slots for 2028 are already sold out, making it difficult to secure earlier construction schedules even at Chinese shipyards. Depending on the ship specifications, the cost of a single LNG dual-fuel 13,000 TEU container ship ranges from $160 million to $180 million. If PIL ultimately orders 8 new ships, the total investment would be at least $1.28 billion (approximately RMB 9.02 billion).
Last month, South Korea's HMM ordered 12 LNG dual-fuel 13,400 TEU container ships from HD Hyundai and Hanwha Ocean, with each ship costing around $182 million. For reference, Clarksons' data shows that the current price for a new LNG dual-fuel 13,000-14,000 TEU container ship is approximately $172.5 million, a 6% decrease from $183 million during the same period last year.
Since 2022, PIL has continued to invest in LNG dual-fuel ships, having ordered a total of 20 LNG dual-fuel container ships from three Chinese shipyards to date. These include 4×14,000 TEU ships from Jiangnan Shipyard, 4×8,000 TEU ships from Yangzijiang Shipbuilding, and 7×13,000 TEU and 5×9,000 TEU ships from Hudong-Zhonghua Shipbuilding. Among these, the 8 ships built by Jiangnan Shipyard and Yangzijiang Shipbuilding have already been delivered.
In August last year, PIL ordered 5×13,000 TEU dual-fuel ships from Hudong-Zhonghua, each costing over $190 million. In November last year, PIL returned to Hudong-Zhonghua to order another 5×9,000 TEU dual-fuel ships, reportedly priced at slightly over $140 million per ship, and in July this year, PIL placed an additional order for 2 ships of the same type.
Founded in 1967 by overseas Chinese entrepreneur Mr. Chang Yun Chung, PIL is now the largest local shipping company in Southeast Asia and ranks among the top 12 global container shipping companies. The company operates a fleet of approximately 100 container ships, providing shipping services and solutions to customers in over 500 destinations across more than 90 countries. Its business focuses on China, Asia, Africa, the Middle East, Latin America, Oceania, and the Pacific Islands.
According to the latest data from Alphaliner, PIL currently operates a fleet of 100 ships, including 82 owned vessels and 18 chartered vessels, with a total capacity of approximately 440,000 TEU, ranking 12th globally with a market share of 1.3%. Additionally, PIL has 23 new ships under construction, totaling 220,000 TEU, accounting for 50.6% of its existing capacity.
Despite an overall decline in global new ship orders this year, the newbuilding market for container vessels has remained exceptionally active, defying broader trends. Shipping companies continue to exhibit strong demand for large vessels, while interest in feeder ships has also surged significantly in recent months. Driven by high charter rates and fleet renewal needs, numerous container shipping firms have placed orders for small and medium-sized vessels.
Last week, China COSCO Shipping Group placed an order for 12 LNG dual-fuel 18,000 TEU container ships at Jiangnan Shipyard, while Germany’s Hapag-Lloyd announced a contract with CIMC Raffles for the construction of eight 4,500 TEU methanol dual-fuel container ships. Including these new orders, data from Linerlytica shows that global new orders for container ships this year have reached a record high of 633 vessels totaling 5.08 million TEU, surpassing the previous records set in 2021 (4.74 million TEU) and 2024 (4.77 million TEU).
Measured by TEU, Chinese shipyards have secured 72% of the global new orders for container ships this year, showcasing particularly outstanding performance. In its latest report, shipbroker Braemar noted, "The surge in orders for feeder container ships at Chinese shipyards shows no signs of cooling down, with the only constraint being the availability of construction slots at these yards."
The unprecedented "order wave" has raised concerns within the industry about future market overcapacity. Filipe Gouveia, Head of Shipping Analysis at the Baltic and International Maritime Council (BIMCO), pointed out that the current orderbook for container ships now accounts for as much as 33% of the existing fleet, expressing apprehension about the large-scale influx of new capacity set for delivery.
Gouveia stated, "From the perspective of supply-demand balance, the massive orderbook for container ships is one of our greatest concerns, especially if normalcy returns to the Red Sea/Suez Canal routes. The container shipping sector would then face the highest risk of demand contraction." He further predicted that over the next five years, capacity growth in the container shipping market will consistently outpace demand growth.
