South Korea’s oceans ministry said Monday it has clinched a contract to build and lease four car carriers to address the lingering supply shortages of shipping vessels, according to Yonhap.
Under the contract, the state-run Korea Ocean Business Corp.(KOBC) will construct and lease four pure car and truck carriers (PCTC), each with a capacity of 10,800 car equivalent units (CEU), to Hyundai Glovis Co., according to the Ministry of Oceans and Fisheries.
The contract came amid the prolonged global shortage of carriers, which hindered outbound shipments of domestically produced automobiles.
“The agreement is expected to support South Korea’s automobile exports by easing the congestion of car deliveries amid the Red Sea situation and the shortage of carriers,” Oceans Minister Kang Do-hyung said.
The newly constructed PCTCs are anticipated to be delivered in 2027.
The vessels will incorporate eco-friendly and low-carbon technologies to meet the global environmental regulations, the ministry added.
Last month, outbound shipments of automobiles expanded for 19 consecutive months by increasing 24.8 percent to US$6.2 billion.