HD Hyundai secures record 2.13 trillion won container ship order
SEOUL : South Korea’s shipbuilding industry is experiencing a “container ship boom” after securing consecutive orders for ultra-large container ships. Container ships, which transport goods in standardized containers, are a primary means of maritime logistics for bulk trade goods such as consumer products and industrial goods.
Just a few years ago, container ships were a ship type domestic companies avoided due to relatively low profitability and price competition with Chinese firms. However, orders have recently surged due to environmental regulations and replacement demand driven by aging fleets.
On the 24th, HD Korea Shipbuilding & Offshore Engineering, a mid-tier holding company of HD Hyundai, announced a contract with HMM to build eight 13,400 TEU (1 TEU equals one 20-foot container) dual-fuel container ships. The total contract value is 2.13 trillion Korean won. This deal marks the largest container ship order in 18 years since the 2007 shipbuilding supercycle.
Samsung Heavy Industries also revealed on the 20th that it secured a large-scale contract to build seven container ships for approximately 2 trillion Korean won. The vessels will be delivered to the shipowner sequentially by November 2029. The company recorded orders worth $6.9 billion (approximately 10.13 trillion Korean won) this year, with this contract accounting for about 10%. Hanwha Ocean also reported that 13 out of its 37 total ship orders this year are container ships.
This year, while demand for LNG carriers—a key high-value ship type for domestic shipbuilders—has declined due to oversupply, container ship demand has significantly increased. According to the Export-Import Bank of Korea’s Overseas Economic Research Institute report, “Trends in the Shipping and Shipbuilding Industries in Q3 2025 and Outlook for 2026,” South Korea’s cumulative ship orders in the first three quarters of this year reached 7.34 million CGT, a 16.7% decrease from last year. By ship type, container ship orders surged by 226.0% to 3.78 million CGT, while LNG carrier orders dropped by 63.6% to 1.47 million CGT.
The rush for container ship orders by South Korean shipbuilders stems from international environmental regulations and geopolitical shifts, including U.S.-China tensions.
The primary driver is eco-friendly regulations. The International Maritime Organization (IMO) plans to reduce greenhouse gas emissions from ships by 20% compared to 2008 levels by 2030 and enforce stricter fuel carbon regulations for ships over 5,000 tons starting in 2027. Violations could incur carbon taxes of up to $380 per ton of excess emissions. Consequently, shipowners are accelerating the replacement of their fleets with new vessels that emit less carbon and have higher fuel efficiency.
Political and trade environments are also changing, with the U.S. considering imposing entry fees on ships made or owned by Chinese companies. While container ship orders were previously dominated by Chinese shipyards, a trend is emerging where shipowners are turning to domestic shipbuilders to avoid U.S. regulations.