Hanwha Shipping Details Largest U.S. Commercial Vessel Order in 20 Years

Hanwha Shipping, the newly-launched U.S. shipping subsidiary of South Korea’s Hanwha Ocean, provided additional details on its shipbuilding plans, which it is calling the largest U.S. commercial vessel order in more than 20 years. The company looks to build out the U.S. Jones Act tanker fleet and launch the first modern U.S. LNG carriers for the international export market.

“We are able to order these U.S.-made MR tankers because of Hanwha’s investment in building a world-class shipyard in Philadelphia,” said Ryan Lynch, President & CEO of Houston-based Hanwha Shipping. “Hanwha has made a long-term commitment to bringing cutting-edge technology from Korea to the Hanwha Philly Shipyard that will create thousands of good, advanced manufacturing jobs in the United States and spearhead the revitalization of America’s maritime industrial base.”

The hallmark of the initiative is an order for 10 medium-range (MR) oil and chemical tankers to be built in Philadelphia. The first tanker is expected to be delivered by early 2029, in what Hanwha Shipping terms “the highest-value commercial order seen at U.S. shipyards.”

The MR vessels will be fitted to transport crude oil, refined petroleum, and chemical products, and will significantly expand the U.S. Jones Act fleet of U.S.-built, U.S.-owned, and U.S.-crewed vessels operating between U.S. ports.

Delivered in 2017, American Pride was the 28th ship built by the yard since it started commercial operations in 2000 (Philly Shipyard)

The ships return the yard now known as Hanwha Philly Shipyard to its roots. Started in 2000 at the site of the former Philadelphia Navy Yard, the company, known as Aker Philadelphia Shipyard, started with contracts to build 46,000 to 50,000 dwt tankers. This included a dozen 600-foot MT46 Veteran-class tankers for Overseas Shipping Group and concluded in 2017 when it delivered American Pride, the fourth 50,000 dwt product tanker built for American Petroleum Tankers (APT), a subsidiary of Kinder Morgan. The yard delivered 24 tankers in addition to its six containership builds for Matson.

As the only company in the world with significant shipbuilding operations in both Korea and the U.S., Hanwha reports it plans to build new MR tankers in the U.S. by transferring its advanced shipbuilding technologies, processes, and supply chains to Hanwha Philly Shipyard.

At the same time, Hanwha Shipping also exercised an option to order a second liquefied natural gas (LNG) carrier, following its first order announced a month ago. They will be the first U.S.-ordered LNG carriers for the export market in almost 50 years and respond to the Trump plan that calls for requiring a portion of U.S. LNG exports to be transported on U.S. ships. The ships will be built via a joint construction model between Hanwha Ocean and Hanwha Philly Shipyard as part of the U.S.-Korea partnership.

The orders are an element of a $5 billion infrastructure plan announced yesterday for Hanwha Philly Shipyard as part of South Korea’s commitment to supporting the growth of U.S. shipbuilding. After acquiring the shipyard at the end of 2024, the company plans to install two additional docks and three quays to increase annual capacity from less than two vessels to up to 20. Hanwha is also reviewing the build-out of a new block assembly facility as it targets work for LNG carriers, naval modules and blocks, and, in the long-term, naval vessels built at the U.S. shipyard.

The Hanwha group quietly launched Hanwha Shipping, based in Texas, in April 2024. According to the company, it aims to take a leading position in the American shipping ecosystem by deploying next-generation digital technologies and advancing the resilience and robustness of America’s energy security and maritime industrial base.