HD Hyundai wins $1.42 billion HMM order for eight LNG ships

HD Korea Shipbuilding & Offshore Engineering said Oct. 20 it won a 1.92 trillion won ($1.42 billion) contract from HMM to build eight liquefied natural gas dual-fuel container vessels.

The agreement lifts the shipyard group to $20.19 billion in cumulative bookings this year across 182 vessels. That total represents 86.6% of its full-year new order target of $23.31 billion, according to regulatory filings.

South Korea's Financial Supervisory Service published the single-sales contract filings on Oct. 20 across three corporate entities. HD Hyundai Heavy Industries filed at 10:47 a.m., followed by HD Korea Shipbuilding at 10:51 a.m. and HD Hyundai at 10:56 a.m.

Each vessel will carry 13,000 twenty-foot equivalent units, the standard measurement for containerized ocean freight. The ships will measure 337 meters in length, 51 meters in beam and 27.9 meters in depth.

The propulsion design relies on dual-fuel engines capable of running on both liquefied natural gas and conventional petroleum marine bunker fuel. The configuration lowers sulfur oxide, nitrogen oxide and carbon dioxide emissions compared with standard heavy fuel oil.

Construction work will be divided between two regional shipyards within South Korea. HD Hyundai Heavy Industries will construct two hulls at its Ulsan shipyard, while HD Hyundai Samho will build six vessels at its Yeongam yard in South Jeolla Province.

The regulatory filings do not state the separate contract value split between the Ulsan shipyard and the Yeongam shipyard for the eight container vessels.

All eight container vessels will incorporate independent liquefied natural gas fuel tanks produced by HD Hyundai Eco Vina. The fabrication base manufactures specialized fuel containment systems, supplying critical propulsion hardware directly from Vietnam.

The internal procurement model enables HD Hyundai to retain higher component margins across its shipbuilding subsidiaries. Sourcing cryogenic tanks in-house reduces third-party supplier exposure during high-capacity yard cycles, according to company executives.

HMM plans to introduce the 13,000-TEU vessels to its Far East-India-Mediterranean loop. That trade service connects East Asian manufacturing centers with Indian subcontinent hubs and southern European discharge ports.

The contract pushes HMM's vessel and infrastructure commitments beyond 6 trillion won ($4.4 billion) this year. The ocean carrier has allocated 12 trillion won toward capital investments since Chief Executive Officer Choi Won-hyuk assumed leadership in March of last year.

The expenditure forms part of HMM's long-range fleet restructuring strategy, which commits 29 trillion won through 2030. That strategic roadmap aims to build an operational container armada of 166 ships representing 1.47 million TEU.

The 2030 plan also encompasses a bulk cargo shipping fleet of 110 vessels totaling 13.52 million deadweight tons. HMM is pairing those deep-sea vessel investments with terminal modernizations, including new shoreside container cranes at its maritime terminal in Tacoma, Washington.

To feed cargo to the large mainline vessels, HMM is also acquiring four smaller feeder ships via resale agreements. That purchase covers three 2,800-TEU feeder container ships and one 1,700-TEU feeder vessel for intra-regional transit lanes.

Commercial container lines are accelerating fleet renewals to navigate tightening global carbon rules. Maritime carriers face escalating compliance penalties under regional emissions trading systems and international net-zero targets unless they adopt lower-emission bunker fuels.

The eight new ships bring HD Korea Shipbuilding's container vessel tally to 38 hulls booked this year. Gas transport remains the yard group's largest product segment, with 57 carriers ordered for liquefied petroleum gas, ammonia and liquid carbon dioxide.

The company's year-to-date order book also features 53 petrochemical product carriers, 17 full-scale liquefied natural gas carriers and 11 crude oil tankers. Two pure car and truck carriers and two roll-on roll-off ships round out the order slate.

Deliveries of the eight dual-fuel container vessels will proceed sequentially through Dec. 31, 2029, when the commercial contract formally expires. The multi-year delivery window ensures slot stability at Ulsan and Yeongam through the late 2020s.

Executives from HD Hyundai and HMM finalized the shipbuilding pact on Oct. 20 during a formal signing ceremony at the Global R&D Center in Pangyo, South Korea.