HD Hyundai Wins 1.9 Trillion Won Order from HMM for 8 LNG Dual-Fuel Container
In a major development in the maritime industry, South Korea’s Hyundai shipbuilding affiliates have successfully secured a contract worth approximately 1.9 trillion won to construct ultra-large container ships for HMM. The contract, announced by HD Korea Shipbuilding & Offshore Engineering, involves the building of eight 13,000-TEU LNG dual-fuel container ships for the shipping giant HMM.
Details of the Construction Contract
The total value of the contract amounts to 1.9196 trillion won, which is roughly equivalent to $1.4 billion. The construction of these vessels will be divided between two shipyards within the group. HD Hyundai Heavy Industries will be responsible for building two vessels valued at 479.9 billion won, while HD Hyundai Samho will handle the construction of six vessels worth 1.4397 trillion won. The contract period is set to run from the present day until December 31, 2029, with the ships scheduled to be delivered sequentially by the end of that year.
Environmental-Friendly Features of the Vessels
The ordered vessels, measuring 337 meters in length, 51 meters in width, and 27.9 meters in height, will be equipped with dual-fuel engines capable of running on both LNG and conventional marine fuel. The use of LNG fuel is expected to significantly reduce greenhouse gas emissions by more than 23% compared to conventional marine fuel. Moreover, with advanced treatment systems in place, nitrogen oxide and sulfur oxide emissions can be cut down by more than 80% and 99%, respectively. This move aligns with the International Maritime Organization’s environmental regulations, making LNG fuel a sustainable and low-carbon option for the industry.
Implications of the Contract
The contract forms part of HMM’s broader ship investment plan, which aims to enhance operational efficiency on core long-haul routes. By ordering these new vessels and acquiring additional ships under construction, HMM plans to strengthen its fleet for deployment on the Far East–India–Mediterranean route. The company also intends to secure feeder ships to complement its operations, with a total investment of approximately $1.6 billion in this round.
The news of Hyundai’s shipbuilding affiliates securing this significant contract underscores their technological expertise and further solidifies South Korea’s position in the global shipbuilding industry. However, the industry will be closely monitoring the implications of this large-scale fleet expansion on global container ship markets and freight rates in the coming years.
