With orders for 12 ultra-large containerships worth 3.68 trillion won (about $2.66 billion), HD Hyundai, South Korea’s largest shipbuilding group, has completed its annual order target for this year ahead of schedule.
HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding business, announced on July 15 that it had recently signed a construction contract with a European shipping company for a total of 12 large 15,500 TEU containerships. The total value of the order is 3.68 trillion won (about $2.66 billion), with a single unit cost of about $222 million. HD Hyundai Heavy Industries and HD Hyundai Samho will build six units each, which are expected to be delivered by June 2028.
Including the latest order, HD KSOE has taken orders for 144 new vessels valued at approximately $16.27 billion, achieving 120.5% of its annual order target of $13.5 billion. Thus, HD KSOE has achieved its annual target ahead of schedule for the fourth consecutive year from 2021 to 2024, and is the first shipbuilding company among the three major Korean shipbuilding companies (HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries) to achieve its annual order target ahead of schedule.
In terms of ship types, these include 8 liquefied natural gas (LNG) carriers, 60 product tankers, 40 liquefied petroleum gas (LPG)/ammonia carriers, 12 large containerships, 1 very large ethane carrier (VLEC), 2 liquefied carbon dioxide carriers, 6 very large crude carriers (VLCCs), 7 medium-sized crude carriers, 2 PCTCs , 1 Floating Storage and Regasification Unit (FSRU), 1 offshore unit, and 4 specialty ships.
Notably, this is the first containership order HD KSOE has taken this year, as well as the first large-scale container contract already made public by the Korean shipbuilding industry this year. Although the shipbuilder has not yet disclosed the shipowner’s information, last month it was reported that French shipping giant CMA CGM had signed a letter of intent (LOI) with HD Hyundai for the construction of two 20 liquefied natural gas (LNG) dual-fuel-powered containerships, and the two sides said they would sign a formal shipbuilding contract soon.
Although HD KSOE has taken over 12 large containerships at one time, it is still Chinese shipbuilders that have taken up most of the market share in the container newbuilding market so far this year. Only in July, Chinese shipbuilders have been in the medium-sized, large containership market to undertake a number of orders.
Among them, Jiangsu New Times Shipbuilding signed 6+4 8,400 TEU LNG dual-fuel powered containerships with Capital Maritime, a shipping company under Evangelos Marinakis, the king of Greek ships; signed a contract with SFL Corporation for five 16,800 TEU LNG dual-fuel powered large container ships; signed 8+4 18,000 TEU LNG Dual Fuel powered Large containerships with East Pacific Shipping respectively.
Greek shipping company Danaos Corporation has placed an order with Dalian Shipbuilding Industry Corporation(DSIC), a subsidiary of China State Shipbuilding Corporation (CSSC), for four 9,200 TEU medium-sized containerships with a total order value of about $416 million; has placed an order with Yangzijiang Shipbuilding for one 8,258 TEU medium-sized containership, with an order value of $93 million, which is expected to be delivered in 2027.
Earlier this year, shipbroker MB Shipbrokers (formerly Maersk Broker, Maersk Broker) noted that “The surge in the container newbuilding market is set to continue through June, with a series of new ship orders expected this summer.”