NOCC Expands Car Carrier Programme with CIMC Raffles

JP Morgan-backed Norwegian Car Carriers (NOCC) has expanded its newbuilding programme by ordering two additional LNG-fuelled car carriers from China's CIMC Raffles. The vessels will be built at the Yantai Raffles facility with delivery scheduled for 2030.

New Orders Confirm Expansion

According to TradeWinds, NOCC has contracted two more vessels at CIMC Raffles, bringing the total number of ships in the programme to six. LNG Prime reports that NOCC has placed orders for more LNG-powered PCTCs in China, consistent with the company's strategy to expand its fleet with environmentally friendly vessels. Shipbuilding databases indicate that the latest pair of ships are designated as hulls 641 and 642, with the potential for two additional units, hulls 651 and 652, scheduled for delivery in 2030 and 2031 respectively.

Detailed Specifications and Timeline

The vessels in question are 7,100 CEU (car and truck equivalent units) car carriers. This addition marks a continuation of NOCC’s relationship with CIMC Raffles, which has already produced four LNG dual-fuel car carriers for the company. These ships were part of an earlier series, with the first two units, NOCC Pacific and NOCC Adriatic, already in service. The remaining ships from the original programme, NOCC Kattegat and NOCC Skagerak, are due for delivery next year.

According to sources at Schulte Marine Concept, which is supervising the construction of the new ships, hull 612 is the fourth vessel in the series and is scheduled for delivery in June 2027. The latest orders confirm NOCC's commitment to expanding its fleet with environmentally sustainable options, specifically LNG-fuelled car carriers.

Financial Backing and Strategic Expansion

NOCC's strategic expansion is significantly bolstered by its financial backing from JP Morgan. This financial support underscores the confidence in the company’s growth strategy and its commitment to the car carrier sector. The decision to expand operations with CIMC Raffles in China reflects a broader trend in the maritime industry, where companies are increasingly looking to leverage the cost-effective and technologically advanced shipbuilding capabilities offered by Chinese yards.

NOCC's expansion also aligns with broader industry trends towards cleaner fuels and the adoption of LNG as a key player in reducing emissions from shipping. This move positions NOCC at the forefront of the transition towards more sustainable shipping practices.

Implications for the Fleet and Industry

The addition of these new vessels underscores NOCC's strategic focus on fleet expansion and environmental sustainability. With the continued global emphasis on reducing carbon emissions, NOCC's move to order LNG-fuelled car carriers is both timely and necessary. This expansion not only strengthens NOCC's market position but also sets a benchmark for other companies in the sector.

The commitment to building vessels at CIMC Raffles in Yantai also highlights the growing importance of Chinese shipyards in the international shipping industry. These yards are known for their advanced technology and competitive pricing, making them an attractive choice for shipowners looking to expand their fleets efficiently.

What this Means for Operators

The expansion of NOCC's car carrier fleet, particularly with the addition of LNG-fuelled vessels, has significant implications for operators in the shipping industry. The influx of new vessels will increase competition and potentially drive down rates in the short term. However, the long-term benefits of more environmentally friendly shipping options will likely lead to improved regulatory compliance and sustainability for all operators. This move by NOCC sets a precedent for other companies to follow, encouraging the wider adoption of LNG as a fuel and the construction of more sustainable shipping fleets.