How Can LNG Vessels Help Carriers Meet Sustainability Goals?

Ocean carriers are investing heavily in fleet modernisation as the shipping industry responds to mounting pressure for sustainable operations.

As environmental considerations increasingly influence procurement decisions, logistics providers that fail to adapt their approaches could find themselves at a competitive disadvantage.

The shift towards decarbonisation is driving shipping companies to acquire new vessels that combine enhanced capacity with reduced environmental impact.

Fleet modernisation

Leading carriers including MSC, Evergreen and Hapag-Lloyd have committed to substantial orders for liquefied natural gas (LNG) and dual-fuel vessels, with delivery schedules extending through to 2029. These acquisitions enable operators to enhance efficiency, expand capacity and transition towards cleaner operations.

The scale of this investment aligns with customer expectations for improved efficiency and environmental performance in maritime logistics. The deployment of these vessels could contribute to lower emissions whilst improving operational performance.

LNG carriers represent specialised tank vessels engineered to transport liquefied natural gas at temperatures of approximately -162 C. The fuel must undergo conversion to liquid form, reducing to approximately 1/600th of its original volume before shipping.

Industry expansion

Container shipping operators globally are accelerating fleet upgrade programmes to provide cleaner alternatives.

COSCO Shipping Holdings announced orders for 18 container vessels in mid-January, representing an investment of approximately US$2.7bn. The order comprises 12 vessels with 18,000 TEU capacity scheduled for delivery between 2028 and 2029, alongside six 3,000 TEU vessels with a six-month delivery window in 2028.

Evergreen has committed US$1.47bn through contracts with two Chinese shipyards covering 23 newbuilds, according to industry reports.

Pacific International Lines (PIL) has signed letters of intent concerning the construction of eight 13,000 TEU LNG dual-fuel container vessels.

Hapag-Lloyd finalised a contract in December for eight new 4,500 TEU container ships featuring advanced dual-fuel methanol engines, with anticipated delivery between 2028 and 2029.

Rolf Habben Jansen, CEO of Hapag-Lloyd AG, says: "We have ordered eight new dual-fuel methanol vessels of 4,500 TEU, with deliveries scheduled for 2028 and 2029. The ships will be equipped with state-of-the-art dual-fuel methanol engines and will be up to 30% more efficient than older vessels of similar size.

"Saving up to 350,000 metric tons of CO₂e per year when operating on methanol, the new ships will help further decarbonise the Hapag-Lloyd AG fleet, replace older tonnage and reduce our dependence on the charter market."

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The MSC Group's investments

The MSC Group has committed substantial resources towards sustainable operations across its fleets, addressing the energy transition through investment in emerging technologies and alternative fuels.

In November, MSC Cruises confirmed orders for two additional 'World Class' LNG vessels, bringing its total French investment to €10.5bn (US$12.5bn). This represents the 7th and 8th World Class ships under the agreement with Chantiers de l'Atlantique.

"These are some of the most energy efficient ships in the world and we continue our commitment to LNG, ensuring we are ready for future renewable fuels," says Pierfrancesco Vago, Executive Chairman, Cruise Division, MSC Group.

"We look forward to continuing with our innovative and successful collaboration with Chantiers de L’Atlantique – our long-term partner for more than 20 years.”

MSC Mediterranean Shipping Company has ordered an additional eight 11,500 TEU LNG dual-fuel ships from Jinglu Shipyard, increasing the partnership total to 16 vessels, the company announced. Deliveries are scheduled to commence by 2029, with current order values estimated at US$2.24bn.

MSC Mediterranean Shipping Company currently has nearly 130 vessels on order, reflecting its expansion and modernisation strategy. The company has committed to at least 30 LNG dual-fuel container ships, with all carrier vessels being constructed by Chinese shipyards.

These substantial investments indicate a sector-wide shift to address requirements for volume, efficiency and sustainability across logistics operations.