From 22 to 6 Vessels: Orders Shrink as Shipping Giant Slams on the Brakes

Amid heightened tensions in the Middle East and profit pressures, Japan’s Ocean Network Express (ONE) is significantly scaling back its newbuilding program.

According to TradeWinds, ONE plans to scale back its originally proposed order for 22 dual-fuel LNG-powered container vessels to just six 15,000-TEU dual-fuel ships, with HD Hyundai Heavy Industries in South Korea selected as the shipbuilder. Delivery of the new vessels is expected to begin in the second half of 2029.

For reference, Clarkson’s data show that the current price of a 15,000–16,500 TEU dual-fuel LNG-powered container ship is approximately US$193 million (about RMB 1.328 billion), down 4% from US$202 million in the same period last year.

Earlier this year, reports indicated that ONE was in talks with several shipyards in China, Japan, and South Korea to order at least 10 13,000-TEU and up to 12 15,000-TEU dual-fuel LNG-powered container vessels, intended to replace a portion of its chartered capacity.

This project has attracted several shipyards, with Yangzijiang Shipbuilding primarily bidding for 13,000-TEU vessels, while Waigaoqiao Shipbuilding is targeting 15,000-TEU ships. South Korea’s HD Hyundai Group and Hanwha Ocean are competing for both vessel types, and Japan’s Nihon Shipyard has also entered the bidding process.

However, industry insiders say that, given the ongoing conflicts in the Middle East and weak third-quarter results, ONE has adopted a more conservative strategy and scaled back its newbuilding program. In January of this year, ONE released its financial results for the third quarter of fiscal year 2025 (October–December 2025), reporting revenue of US$4.07 billion, down from US$4.85 billion in the same period last year, along with a loss of US$88 million (approximately RMB 606 million). EBITDA also plunged sharply, from US$1.58 billion in the prior-year quarter to US$536 million (about RMB 3.69 billion).

ONE attributes the decline in profitability to weaker freight rates rather than insufficient demand. Some observers believe that ONE’s stake in Seaspan—currently about 48.9%—may prompt the company to reassess its fleet expansion strategy, given that Seaspan is the world’s largest independent container ship owner.

According to earlier estimates, the construction of ONE’s 22 LNG dual-fuel container ships could require as much as US$4.2 billion (approximately RMB 28.907 billion), with each 13,000-TEU dual-fuel vessel priced between US$160 million and US$180 million and each 15,000-TEU vessel costing up to US$200 million. Now, however, the project has been scaled down to just six vessels, and the total cost has been reduced to US$1.2 billion (approximately RMB 8.259 billion).

In recent years, ONE has been steadily placing orders to expand its fleet. According to reports, in March 2022 the company unveiled a multi-billion-dollar expansion plan, under which it intends to invest US$20 billion over the fiscal years 2022–2030, with up to US$10 billion earmarked for newbuildings—projected at an annual investment of 150,000 TEU—and the remaining US$10 billion allocated to terminals, technology, containers, and other related areas.

In May of the same year, ONE placed orders with HD Hyundai Heavy Industries and Japan’s Imabari Shipbuilding for five 13,700-TEU container vessels each, marking the first time ONE has acted as the shipowner to place direct vessel construction orders. In March 2023, ONE further ordered ten 13,700-TEU container vessels from Imabari Shipbuilding.

In 2024, ONE placed orders with Jiangnan Shipyard and Yangzijiang Shipbuilding for a total of 28 13,000-TEU methanol-fueled dual-fuel container vessels—11 from Jiangnan Shipyard and 17 from Yangzijiang Shipbuilding. This marks NOT only ONE’s first investment in dual-fuel ships but also its inaugural direct order as a shipowner at mainland Chinese shipyards.

Last year, ONE placed its first order for LNG dual-fuel vessels, signing a contract with HD Hyundai Heavy Industries to build eight 15,900-TEU dual-fuel LNG-powered container ships. In the same year, the company also ordered four 3,000-TEU conventional-fuel feeder vessels from a Japanese shipyard.

According to Alphaliner, ONE currently operates a fleet of 273 vessels with a total capacity of approximately 2.13 million TEUs, comprising 107 owned ships and 166 chartered vessels. This places the company sixth globally in terms of capacity, with a market share of 6.3%. In addition, ONE has 48 newbuilds on order totaling about 560,000 TEUs, representing 26% of its existing fleet.

According to reports, ONE was established in 2017 as a joint venture among Mitsui O.S.K. Lines, Kawasaki Kisen Kaisha, and Nippon Yusen Kabushiki Kaisha to operate container shipping services, with the three companies currently holding 31%, 31%, and 38% of the equity, respectively. Originally, ONE was a member of THE Alliance alongside Hapag-Lloyd, Yang Ming Marine Transport, and HMM; however, following Hapag-Lloyd’s launch this year of a long-term operational collaboration program called “Twin Star” with Maersk, the remaining three members of the former THE Alliance have reorganized into the Premier Alliance.