The historic peak we are seeing in container ship orders is thanks, in no small part, to the massive agreement recently reached between France and China. In April, the French shipping magnate CMA CGM made a deal with the China State Shipbuilding Corp. in Beijing for 16 container ships at the price of $3.06 billion. This is the largest order in Chinese shipbuilding history, which as a collective, counts for nearly half of all shipbuilding orders across the globe.

To put numbers in further perspective, there have been 8.61 million TEU contracted in the last ten quarters. This matches the amount that had previously been ordered the preceding 30 quarters. Additionally, we have now witnessed an increased order book for ten consecutive quarters. The orders keep coming and there appears to be no sign of slowing down.

One of the most notable aspects of these recent orders for new containerships, apart from the size, is their emphasis on lowering emissions. International trade is an important link for the global economy that provides disparate locations with necessary goods. However, it is estimated that the shipping industry is responsible for 3% of all greenhouse gas emissions. With this knowledge, many of the leading shipping companies are cognizant of their impact and are setting realistic targets in order to combat climate change. 

“57% of the TEU capacity in the order book involves ships with some level of alternative fuels preparation compared to only 10% in the current fleet,” Hellenic Shipping News reports. At the time of writing, the vast majority of containerships use diesel engines while the first ships delivered as part of the current order book will use methanol. Switching engines from diesel to methanol has been a popular idea for energy scientists, especially in China. There are several reasons why methanol is an attractive alternative including the fact that petroleum reserves are shrinking, methanol produces less carbon dioxide, and it is about half the cost of diesel.

Other ships that are being built will have the ability to use low-sulfur fuel oil, high-sulfur fuel oil, liquefied natural gas, and ammonia, in addition to methanol.