CMA CGM will build 22 new container ships to meet present and future demand growth after striking an agreement with China State Shipbuilding Corporation (CSSC).
They will include six liquified natural gas-powered (LNG) vessels with a capacity of 15,000 TEU, six LNG-powered vessels with a capacity of 13,000 TEU vessels and 10 very low sulphur fuel oil-powered vessels with a capacity of 5,500 TEU (VLSFO).
The carrier also said it expects the new vessels to join its fleet between 2023 and 2024. The announcement follows CMA CGM’s breaking of the vessel utilisation record in early April, when the ‘CMA CGM Jacques Saade’ left the Port of Singapore with 21,433 TEU, surpassing the previous highest number which it set in October 2020.
In a statement, CMA CGM said the new vessels will all be powered by environmentally friendly fuels and will help it “accommodate market growth”.
Driven by booming consumer demand, carriers are looking for ways to transport more goods as efficiently as possible, and subsequently are building bigger ships and changing their business models to end-to-end supply chain service providers.
The boom in consumer demand has had a substantial effect across the logistics industry, such as causing congestion at many of the world’s biggest container hubs, including the ports of Los Angeles, Long Beach and Oakland.
Additionally, carriers’ profit margins have improved year-on-year, in some cases by double or triple digits, a trend which some industry experts expect to continue for at least another two years.