HD Korea Shipbuilding & Offshore Engineering, has secured a significant order for new containerships, with the deal valued at around $27 billion.
While the company’s announcement only refers to the client as a European shipping firm, numerous reports suggest that CMA CGM is the one placing the order.
This new order comprises 12 vessels, with half to be constructed at HD Hyundai Shipyard in Ulsan and the other half at HD Hyundai Samho in Yeongam. The delivery of this new class of ships will be finalized by June 2028.
Details were scarce, but it was revealed that the ships will have a capacity of 15,500 TEU. Reports suggest the vessels will be LNG-fueled and will incorporate advanced technologies, including a heat recovery system utilizing waste heat for energy.
Speculation suggests that even with some older vessels being replaced or retired, CMA CGM is positioned to increase its market share. Currently holding 12.5 percent, according to Alphaliner, the company is set to surpass Maersk as the second-largest carrier in the segment. CMA CGM previously announced plans to invest over $17 billion for 120 LNG-fueled vessels to be delivered by 2027.
As informed, HD Hyundai highlighted that the order aligns with its strategy to focus on securing high-value-added ships. The shipbuilding group aims to enhance profitability by focusing on orders for high-cost vessels like LNG-fueled containerships and LNG carriers. It is also among the first to receive orders for a new class of very large ammonia gas carriers.
With these latest orders, HD Hyundai has exceeded its 2024 order target of $13.5 billion, achieving 120.5 percent of its goal. In just over six months, the group has secured $16.27 billion in new contracts, totaling 144 ships. These include chemical tankers (60), LPG/ammonia carriers (49), and eight LNG carriers, in addition to the 12 containerships and 13 crude oil tankers. Earlier forecasts had anticipated a slower pace of orders for 2024.
