Korea Shipbuilding & Offshore Engineering Secures Order for 8 Ships Worth 835 Billion KRW

Contract Signed for Construction of 4 Container Ships, 3 LPG Carriers, and 1 PC Ship with European Shipowners and Others

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, a mid-tier shipholding company of Hyundai Heavy Industries Group, has secured orders for eight vessels worth a total of 835 billion KRW.

Korea Shipbuilding & Offshore Engineering recently announced on the 9th that it signed construction contracts for four ultra-large container ships of 15,900 TEU, two ultra-large LPG carriers of 91,000 cubic meters (m³), one medium-sized LPG carrier of 40,000 cubic meters (m³), and one 50,000-ton PC vessel with shipping companies based in Liberia, Oceania, and Europe.

The ultra-large container ships ordered this time measure 364 meters in length, 51 meters in width, and 30 meters in height. They will be built at Hyundai Heavy Industries in Ulsan and are scheduled to be delivered sequentially to the shipowners starting from the second half of 2022.

The Shanghai Containerized Freight Index (SCFI), a global benchmark for container ship freight rates, recorded its highest point of 2,885 since tracking began on January 15, 2009, and as of the 26th of last month, it stood at 2,775 points, which is about three times higher than the 876 points recorded in the same period last year.

Order news has continued in other ship types as well. The two ultra-large LPG carriers ordered by Korea Shipbuilding & Offshore Engineering will be built at Hyundai Heavy Industries and are scheduled for delivery starting in the first half of 2023. The medium-sized LPG carrier and the PC vessel will be constructed at Hyundai Mipo Dockyard and are expected to be delivered to the shipowners starting from the second half of 2022. The ultra-large LPG carriers are equipped with LPG dual-fuel propulsion engines, enabling compliance with strengthened environmental regulations without the need for scrubbers.

A representative from Korea Shipbuilding & Offshore Engineering stated, "With rising freight rates and expectations of increased cargo volume, inquiries for orders are actively continuing, indicating that the shipbuilding market recovery is gaining momentum. We will lead the global market based on continuous technological development and quality management."