Xinde Marine News | Shanghai

Wan Hai Lines wants its new ships to remain competitive beyond 2050, but uncertainty over future fuels and regulations is making long-term investment decisions increasingly complex.

At the Finance and Insurance Thematic Forum of the 2026 North Bund Forum, which was co-organized by five institutions including the Shanghai Shipping Exchange Institute on October 20, Wan Hai Lines Vice Chairman Randy Chen stressed the importance of maintaining fuel flexibility to avoid stranded assets. His concerns reflected a wider discussion among shipowners, fuel suppliers and insurers on how to manage and share the risks of shipping’s green transition.

Shipowners: Keep fuel options open

Wan Hai Lines has adopted different LNG- and methanol-capable vessel configurations to preserve its options as fuel markets and regulations evolve.

Seaspan Executive Vice President and Chief Commercial Officer Li Kun shared a similar approach. He described a European customer that had invested heavily in one fuel before later considering another.

Seaspan operates vessels using conventional fuels, LNG and methanol, and has developed the capability to convert existing ships. This allows it to respond to changing customer preferences, including when long-term charters expire.

DNV Maritime CEO Cristina Saenz de Santa Maria noted that around 10% of the existing global fleet can use alternative fuels, compared with approximately 40% of the newbuilding orderbook. As investment accelerates, maintaining flexibility is becoming increasingly important.

But flexibility alone cannot guarantee a vessel’s long-term competitiveness. Owners must also be able to obtain the chosen fuel at a commercially viable price and in the right location.

Fuel suppliers: Make green fuels commercially viable

Zhu Jiaqi, Chairman of Shenergy Environment Technology, outlined both the progress and remaining challenges in China’s green methanol market.

Shanghai’s 100,000-tonne-per-year green methanol project began operating in late 2025 and achieved local production and bunkering in July 2026. However, China’s extensive planned production capacity has yet to translate into widespread, reliable supply.

Cost remains a major obstacle. Before the disruptions around the Strait of Hormuz, green methanol production costs and selling prices were approximately twice those of conventional methanol, said Zhu.

He proposed two ways insurers could support the market: covering risks associated with green fuel certification and carbon accounting, and developing fuel delivery insurance.

The latter could protect suppliers and shipowners when fuel cannot be delivered within a vessel’s limited bunkering window, reducing the commercial risks associated with supply disruptions.

Such products could help make green fuel contracts more dependable. For insurers, however, providing effective coverage requires a better understanding of the risks involved.

Insurers: Develop new ways to assess risk

Beat Strebel, CEO Reinsurance China and Country President China at Swiss Re, explained that traditional marine insurance pricing relies on decades of operating and claims data. For alternative-fuel vessels, historical loss records remain limited.

Insurers therefore need to rely more on forward-looking scenario modelling, engineering expertise, operational knowledge and artificial intelligence to assess potential losses.

Beat advocated involving insurers at the vessel design stage, allowing risks to be assessed before ships enter service. This approach, known as “insurance by design”, could help insurers develop more effective coverage as new technologies are introduced.

Liability rules are another part of the challenge. Nick Shaw, CEO of the International Group of P&I Clubs, confirmed that P&I clubs already provide liability coverage for alternative-fuel vessels, but gaps remain in parts of the international liability and compensation framework.

The International Group is working with other industry organizations on proposals for the International Maritime Organization to address these gaps.

China develops practical insurance solutions

Chinese insurers are also developing products and collaborative mechanisms to support the transition.

Chen Hui, Director and General Manager of China Pacific Property Insurance, outlined coverage for battery-powered, LNG- and methanol-fuelled vessels, as well as an insurance product linked to EU Emissions Trading System carbon-price fluctuations.

At the forum, China Pacific joined Shanghai Maritime University, CATL and other industry partners in launching the Green Shipping Risk Governance and Insurance Innovation Laboratory. The initiative aims to advance risk assessment, data development, technical standards and insurance product innovation.

China P&I Club Chairman Capt. Xu Lirong also highlighted the industry’s shift towards full-lifecycle risk management, with insurers playing a greater role in prevention, monitoring and early warning, alongside traditional claims compensation.

The forum also saw the launch of the Shanghai International Shipping Valuation Platform, designed to support vessel valuation for transactions, financing and insurance. As fuel technologies evolve, more effective valuation tools can help market participants assess the long-term value of shipping assets.

The discussions in Shanghai highlighted how different segments of the maritime industry are addressing the same transition. Shipowners are preserving investment flexibility, fuel suppliers are seeking more reliable commercial arrangements, and insurers are developing new ways to assess and share risks.

Bringing these efforts together will be essential to making investment in cleaner ships commercially viable, supported by affordable fuel, effective insurance and clearer rules.