"Surpassing China"...HD Korea Shipbuilding & Offshore Engineering Wins Massive 2.5 Trillion Won Container Ship Orders

Orders Secured from Oceania and Taiwan-based Shipping Companies
22 Container Ships to Be Delivered by 2028
Leading Market Share in Feeder Container Ships, Traditionally Dominated by China

HD Hyundai's intermediate shipbuilding holding company, HD Korea Shipbuilding & Offshore Engineering, has secured orders for a total of 22 container ships worth 2.5354 trillion won. In particular, the company appears to be benefiting from the global market's growing anti-China sentiment, especially in the feeder container ship segment, where China has traditionally been strong, by increasing its market share and enjoying a secondary benefit from the United States' containment measures against China.

On April 28, HD Korea Shipbuilding & Offshore Engineering announced that it recently signed construction contracts with an Oceania shipping company for four 8,400 TEU (twenty-foot equivalent unit) container ships, eight 2,800 TEU container ships, and six 1,800 TEU container ships. Previously, on April 23, the company secured orders for two 2,800 TEU container ships, and on April 24, it won orders for two 16,000 TEU container ships. As a result, the company achieved a total of 22 container ship orders within four days.

HD Hyundai Mipo delivered a 1600TEU-class container ship in 2022. HD Korea Shipbuilding & Offshore Engineering

Of the newly ordered container ships, six 1,800 TEU vessels and ten 2,800 TEU vessels will be built at Ulsan-based HD Hyundai Mipo, while four 8,400 TEU vessels and two 16,000 TEU vessels will be constructed at HD Hyundai Samho in Yeongam, South Jeolla Province. All vessels are scheduled to be delivered sequentially to the shipowners by the first half of 2028. The 8,400 TEU container ships built at HD Hyundai Samho will be equipped with LNG dual-fuel engines capable of running on both LNG and diesel. The 16,000 TEU container ships will also feature scrubbers, which are exhaust gas reduction devices, to comply with the strengthened environmental regulations of the International Maritime Organization (IMO).

According to Clarkson Research, HD Hyundai Mipo has secured orders for 16 out of the 33 feeder container ships (less than 3,000 TEU) ordered worldwide this year, ranking first in market share. Until now, the feeder container ship market has been dominated by Chinese shipbuilders, who have leveraged a stable domestic market and price competitiveness. However, with rising global demand for eco-friendly vessels and the United States’ sanctions policy against China, more shipowners are turning to Korea even in the feeder container ship segment, which is considered relatively less complex to build.

A representative from HD Korea Shipbuilding & Offshore Engineering stated, "The three shipbuilding companies under HD Hyundai (HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo) have always excelled in container ship construction, but recently, anti-China measures have also contributed to this surge in orders."