HD Korea Shipbuilding & Offshore Engineering has secured a significant contract with a European shipping company for the construction of 12 ultra-large container ships, each with a capacity of 15,500 TEU. The announcement was made on July 15, with the total contract value amounting to 3.6832 trillion won . This deal underscores the growing demand for advanced, eco-friendly vessels in the global shipping industry.

The 12 container ships will be constructed in batches of six at Ulsan HD Hyundai Heavy Industries and Yeongam HD Hyundai Samho in South Jeolla Province. The vessels are scheduled for sequential delivery to the shipowner by June 2028. These ships will be equipped with state-of-the-art eco-friendly technologies, including LNG dual-fuel propulsion engines and waste heat recovery systems, which recycle waste heat generated by the engine as an energy source.

An official from HD Korea Shipbuilding & Offshore Engineering emphasized the company’s strategic focus, stating, “We will continue to enhance profitability by selectively securing high-value-added ships.” The official further added, “Furthermore, we will solidify our leading position in the next-generation eco-friendly ship market through securing super-gap technological capabilities.”

The contract comes at a time when the global shipping industry is experiencing a rebound in demand for container ships. According to Clarkson Research, a British shipbuilding and shipping market analysis agency, the increase in international trade volume and the expansion of external uncertainties have led to a rise in maritime cargo volume. This surge has caused container freight rates to steadily increase, driving up the demand for new container ships.

In July last year, the average newbuilding price for LNG dual-fuel propulsion container ships (based on 15,000 TEU) was around $190 million. However, due to the rising demand and increased freight rates, the price now exceeds $220 million. This trend highlights the economic impact of large shipbuilding contracts and their significance in the broader market.

HD Korea Shipbuilding & Offshore Engineering has been actively securing high-value contracts. In July, the company signed construction contracts for a total of four vessels, including two Very Large Gas Carriers (VLGCs) and two Very Large Ammonia Carriers (VLACs), amounting to 671.6 billion won. These contracts reflect the company’s robust position in the global shipbuilding industry and its commitment to advancing eco-friendly technologies.

Source: Business Korea