News / Wan Hai and Cosco step up box ship 'arms race' with more newbuild orders

Photo: Wan Hai Lines

Taiwan’s Wan Hai Lines has returned to South Korea for more newbuilding containerships, as it expands its international network.

On Friday, the 11^th largest liner operator announced orders for eight 16,000 teu methanol dual-fuelled containerships, split between Hyundai Samho Heavy Industries and Samsung Heavy Industries, for a total of $1.6bn. Deliveries are expected in 2027 and 2028.

Wan Hai said in its Taiwan Stock Exchange filing the commissions, which follow orders at Hyundai Samho and Taiwan’s CSBC in August, are part of its long-term business development.

 Linerlytica analyst Tan Hua Joo told The Loadstar: “Wan Hai will need to announce its new transpacific network in 2025, as it has two vessel-sharing agreements, with Hapag-Lloyd and ONE, that will lapse next year. Wan Hai is expected to join one of the new alliances and these 16,000 teu ships will eventually be part of the new transpacific network.”

 In August, Wan Hai GM Tommy Hsieh disclosed that the company had been invited to join a shipping alliance, but stopped short of disclosing which.

Originally an intra-Asia specialist, Wan Hai re-entered the long-haul trades during the Covid-19 pandemic, and has not looked back. Local media speculated that the carrier could be poised to break into the top 10 liner operators’ list.

With 30 newbuildings, of 308,339 teu to add to Wan Hai’s current fleet of 123 ships, of 530,000 teu, the line could surpass its compatriot peer, Yang Ming, and ninth-ranked Zim.

However, Mr Tan pointed out that Yang Ming was set to order a number of 24,000 teu ships, so should maintain its position.

The battle amomng carriers for market share is deepening, as more newbuildings are ordered. Today, Chinese media reported that Cosco ordered six 13,600 teu conventionally fuelled ships at Hudong-Zhonghua Shipbuilding for around CNY6.41bn ($900m). To be delivered in 2027, they complement a similar order by Seaspan Corp on 18 October, for vessel to go on charter to Cosco subsidiary OOCL.

 The orders take Cosco’s orderbook to 58 ships, of 918,963 teu, while its in-service fleet stands at 3.29m teu