HMM, South Korea’s largest shipping company, has announced a major investment in its fleet expansion and green technology by ordering new eco-friendly container ships from domestic shipbuilders.
New Shipbuilding Order Details
HMM placed an order for twelve 13,000 TEU container ships with a total value of 3.05 trillion won (approximately $2.3 billion).
- Shipbuilders: The vessels will be constructed by HD Hyundai Heavy Industries and Hanwha Ocean.
- Fuel Type: All twelve ships will be powered by Liquefied Natural Gas (LNG).
- Significance: This marks HMM’s first major domestic shipbuilding investment in seven years.
Strategic Rationale
The new order is a key part of HMM’s mid-to-long-term strategy, focusing on both capacity growth and environmental compliance:
- Carbon Emission Reduction: The use of LNG is a critical step in meeting stricter carbon emission regulations. According to classification society DNV, LNG fuel can reduce greenhouse gas emissions by more than 23%, nitrogen oxides by over 80%, and sulfur oxides by more than 99% compared with conventional fuels.
- Fleet Expansion: The investment will help HMM expand its fleet and strengthen its overall shipping capacity under its 2030 mid-term plan.
- Alternative Fuels Investment: HMM’s commitment to eco-friendly operations is further demonstrated by its existing fleet, which includes nine methanol-fuelled and two LNG-fuelled container ships.
Support for South Korean Shipbuilding
Analysts indicate that this significant order will provide a substantial boost to South Korea’s shipbuilding sector, which is currently experiencing a recovery driven by high global demand for low-emission vessels. Data from Clarkson Research shows that alternative fuels powered about half of all vessels ordered globally last year, with LNG accounting for 70% of those alternative fuel orders.
History of Major Domestic Orders
This is the latest in a series of large-scale domestic orders placed by HMM in recent years:
- 2018 Order: Twenty ships (twelve 24,000-TEU and eight 16,000-TEU vessels) for 3.1532 trillion won.
- 2021 Order: Twelve 13,000-TEU ships for 1.7776 trillion won.
- 2023 Order: Nine 9,000-TEU methanol-fuelled ships for 1.4128 trillion won.
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Source: Marine Insight
