MAERSK unveiled plans for a massive 800,000 teu newbuilding programme as it reported second-quarter results on Wednesday.

The ambitious project, being implemented through direct newbuilding orders and time charter agreements, seems to signal that after focusing on its logistics integration strategy, the company is now looking to catch up with competitors in ordering.

Maersk said in its latest quarterly report that the new dual-fuel capacities, nearly a quarter of its existing fleet, are expected for delivery from 2026 to 2030. 

It now forecasts capital expenditures of $10bn-$11bn for 2024-2025 due to continuous fleet renewal.

The orderbook update also confirms that Maersk has decided to pivot towards bio-LNG, a fuel type the carrier had previously dismissed.

“To ensure the long-term competitiveness of the fleet and its ability to deliver on the decarbonisation goals, Maersk has elected a mix of methanol and liquified gas dual-fuel propulsion systems,” Maersk said in a statement.

While Maersk remains committed to green methanol as the most competitive and scalable fuel option in the short term, the new orders confirm the long rumoured U-turn into liquified bio-methane as an additional fuel option.

Lloyd’s List has reported that slower-than-expected green methanol production and uncertainty around shipping carbon prices are behind the decision to hedge bets.

Maersk said about 300,000 teu will be owned capacity, while the rest is planned through time charters. The company added it will determine the exact split between propulsion technologies based on future regulations and green fuel availability.

Once the vessels have been delivered, around 25% of the carrier's fleet will be equipped with dual-fuel engines and Maersk has confirmed that it has started securing offtake agreements for “liquified bio-methane (bio-LNG) to ensure that the new dual-fuel gas vessels provide greenhouse gas emissions reductions in this decade”.

The ordering plan comes as the Red Sea disruption has boosted freight markets again after the pandemic, further filling carriers’ coffers and strengthening their expansion capacity.

But in today's statement, Maersk reiterated its intention to maintain its fleet size at 4.3m teu, emphasising that the additional capacity will be used to replace older ships set for demolition. The strategy could, however, face challenges, Alphaliner noted.

The consultancy pointed out in a report this week that Maersk, which has favoured non-shipping growth, lags rivals in growing fleet.

The Copenhagen-based company has seen its share of global capacity slide yearly since 2018. It was overtaken as top carrier by Mediterranean Shipping Co in January 2022, while number three CMA CGM also threatens to unseat it as second-largest, based on its huge orderbook.

Alphaliner noted five of the top 10 carriers now have larger orderbooks than Maersk’s.

“The group could come under pressure from shareholders for the strategy if financial returns do not improve, with the group’s preliminary figures for 2Q indicating an operating margin of 6%, despite the Red Sea crisis,” it said.

Maersk today reported second-quarter adjusted earnings before interest and tax of $756m, unchanged from its preliminary report published on August 1, compared with $177m in the first quarter. That puts first-half adjusted ebit at $930m.

“Our results this quarter confirm that performance in all our businesses is trending in the right direction,” said chief executive Vincent Clerc, adding that the Red Sea situation was expected to continue for the rest of 2024.

“As we look ahead, our focus remains on leveraging organic growth while exploring opportunities for value-accretive acquisitions, particularly in Logistics.

“We will maintain tight cost control and high asset utilisation, and further execute on our fleet renewal program,” Clerc said.

Maersk also kept its full-year guidance unchanged, expecting global container demand to rise 4%-6% in 2024 versus 2023, up from its prior 2.5%-4.5% projection.

“Trading conditions remain subject to higher than normal volatility given the unpredictability of the Red Sea situation and the lack of clarity of supply and demand in Q4,” it said.