HD Hyundai Secures Largest Container Ship Order In 18 Years Worth USD 1.4 Billion

South Korea’s shipbuilding industry is seeing a major rise in container ship orders, led by HD Hyundai’s new contract with HMM worth 2.13 trillion won (USD 1.4 billion). It is the company’s largest container-ship order since 2007.

HD Korea Shipbuilding & Offshore Engineering, the shipbuilding arm of HD Hyundai, said the order includes eight 13,400-TEU LNG dual-fuel container ships.

According to the company, each vessel will measure 337 metres in length, 51 metres in width and 27.9 metres in height, and will feature LNG dual-fuel propulsion systems with large fuel tanks to improve fuel efficiency.

Of the eight ships, two will be built at HD Hyundai Heavy Industries and six at HD Hyundai Samho, with deliveries planned sequentially through the first half of 2029.

With this deal, HD Hyundai now has orders for 69 container ships for 2025, with a total capacity of 720,000 TEUs. This is its second-highest annual total after 2007, when it secured 102 ships with 793,473 TEUs.

The company’s total order value has reached USD 16.22 billion from 116 vessels, which is 89.9 per cent of its full-year target of USD 18.05 billion.

An official from HD Hyundai said the company’s technological strengths and customer trust continue to reinforce its position globally, adding that HD Hyundai plans to continue supporting decarbonisation with efficient and environmentally friendly ships.

HD Hyundai vessels are known to cost 20–30 percent more than Chinese competitors but continue to attract major liners due to their verified fuel efficiency, performance and safety.

The industry-wide rise in container ship orders is seen as a “container ship boom.” These ships carry goods in standardised containers and play a key role in global trade.

South Korea’s shipyards had avoided building container ships until recently because profits were lower and Chinese shipyards offered cheaper prices.

However, orders have increased again due to stricter environmental rules and the need to replace older ships. HD Hyundai’s latest contract with HMM is the biggest container-ship order won by a Korean yard in 18 years.

Samsung Heavy Industries also secured a separate large order on 20 November to build seven container ships worth about 2 trillion won (USD 1.36 billion) for an Asian shipowner.

With this deal, Samsung Heavy has secured 39 vessels worth USD 6.9 billion this year, reaching 70 per cent of its annual target of USD 9.8 billion. In shipbuilding alone, Samsung Heavy has booked 38 vessels worth USD 6.1 billion, which is already 105 per cent of its target.

Hanwha Ocean has also reported solid progress, with 32 vessels ordered this year, worth around USD 6.32 billion. These include 13 container ships, six LNG carriers, 12 very large crude carriers (VLCCs) and one icebreaking research vessel.

The company reported a dock utilisation rate of 101 per cent in the third quarter, showing that its shipyards are operating at full capacity.

References: The chosun, koreajoongangdaily

Source: Maritime Shipping News