HD Hyundai Confirms HMM Order, Pushes to Highest Boxship Orders in 18 Years

HD Korea Shipbuilding, the holding company for the Hyundai shipbuilding yards, reports it has now booked the highest number of containership orders in 18 years. It said the recently announced order from HMM has driven the company to a new peak last seen in the supercycle in 2007.

HMM had announced in October that it was ordering large containerships and tankers as part of its modernization and expansion efforts. The shipping company said the deals, valued at approximately $2.8 billion, were being split between HD Hyundai and Hanwha Ocean. It came as HMM also achieved a critical milestone of surpassing a capacity of 1 million TEU.

Hyundai provided a few additional details, reporting the new vessels will be dual-fuel LNG and designed to maximize efficiency. They will be 337 meters (1,105 feet) with a capacity for 13,400 TEU. The order valued at $1.46 billion is for a total of eight vessels, with six to be built at the Samho yard and two at HHI. Deliveries will be through the first half of 2029. Hanwha Ocean will build four additional containerships with a similar capacity.

They report that a unique feature of the vessels will be a 50 percent larger fuel tank. HHI says it will improve operating efficiency for the vessels. The company highlights that the strength of its technology was a key factor in winning the order.

With this order confirmed, HD Hyundai says it has now booked a total of 69 container vessels with a total capacity of 720,000 TEU. During the 2007 supercycle, it reports it booked 793,473 TEU in orders.

The strength of the containership orderbook is important as the yard looks to compete against the lower-cost Chinese rivals. HD Hyundai looks to use its technology, such as HiNAS Control, an automation navigation assistance system, to help it compete. HiNAS, it says, provides navigation support and RPM optimization, delivering a 15 percent reduction in carbon emissions and equal improvement in fuel efficiency.

HD KSOE recently announced the plan to combine HD Hyundai Heavy Industries and HD Hyundai Samho into a single operating company. The effort is to improve management efficiency for the two yards.

Despite forecasts of a decline in shipbuilding orders and a loss of market share to China, Korea and HD Hyundai has been reporting a strong year. The company says in total it has achieved 90 percent of its annual target for $18.05 billion in orders this year. So far, it has booked 116 ships worth $16.22 billion.