Hapag-Lloyd has firmed up its fleet renewal plans with an order for eight dual-fuel methanol container ships at China’s CIMC Raffles, alongside agreements to charter a further 14 vessels on long-term contracts.

The German liner major said the eight newbuildings will each have a capacity of 4,500 teu, with deliveries scheduled for 2028 and 2029. The investment totals more than $500m and marks the company’s first newbuild project based on methanol propulsion.

The ships will be fitted with dual-fuel engines capable of running on methanol and conventional fuel. Hapag-Lloyd said the vessels will be up to 30% more efficient than older ships in the same size range and could cut emissions by as much as 350,000 tonnes of CO₂ equivalent per year when operating on methanol.

The order adds to a growing alternative-fuel portfolio at the carrier, which already has 37 LNG dual-fuel ships in operation or on order, with the ability to run on biomethane.

Alongside the firm order, the Hamburg-based carrier has agreed to charter 14 additional feeder ships on a long-term basis. These include four vessels of 1,800 teu, six of 3,500 teu and four more of 4,500 teu, with deliveries spread between 2027 and 2029. Together with the CIMC Raffles order, the carrier is investing in 22 ships below 5,000 teu, as previously outlined earlier this year.

Chief executive Rolf Habben Jansen said fleet renewal remains central to the company’s Strategy 2030. “The new ships will help replace older tonnage, further decarbonise the Hapag-Lloyd fleet and reduce our dependence on the charter market,” he said, adding that operating costs would also be lower.

The methanol newbuilds sit alongside other steps taken by the carrier to cut emissions. Hapag-Lloyd has agreed with Seaspan to convert five 10,100 teu ships to methanol dual-fuel capability in 2026 and 2027, and last year signed a supply deal with China’s Goldwind for 250,000 tonnes of green methanol per year. The fuel mix of bio- and e-methanol is expected to reduce greenhouse gas emissions by at least 70%.

Hapag-Lloyd is targeting a one-third cut in absolute fleet emissions by 2030, compared with 2022 levels, and net-zero operations by 2045. As of the end of September, the carrier operated over 300 ships totalling about 2.5m teu, ranking it as the world’s fifth-largest container line.