“So That’s What Happened to Hanwha Ocean’s Stock Price”… It Secured 2 Trillion Won Worth of Orders in Three Days

Orders Worth 1.5 Trillion Won to Be Delivered by 2029 Another Large Additional Contract Just One Year Later

사진 확대 A very large containership built by Hanwha Ocean during a sea trial. [Photo: Hanwha Ocean]

Hanwha Ocean secured 2 trillion won worth of shipbuilding orders in just two days. The total includes 1.5 trillion won worth of containership orders from a major global shipping company.

Hanwha Ocean announced on the 3rd that it had signed a 1.5527 trillion won construction contract with Yang Ming Marine Transport for six 13,650-TEU liquefied natural gas (LNG) dual-fuel containerships. One TEU is equivalent to one 20-foot container.

The vessels will be built at the company’s Geoje shipyard and delivered sequentially by the second half of 2029. Earlier, on the 1st, Hanwha Ocean won an order for three very large gas carriers (VLGCs) worth 477.8 billion won from a shipowner in Oceania. The combined value of the orders secured over the two days reached 2.0305 trillion won.

This contract follows Yang Ming Marine Transport’s first newbuilding deal with Hanwha Ocean, signed a year ago when it ordered seven 15,880-TEU LNG dual-fuel containerships in September last year. The first vessels have yet to be delivered, meaning the second contract was concluded before the initial ships had even entered service.

Industry observers are focusing on the significance of the deal as a repeat order rather than simply its size. Hanwha Ocean explained that the contract confirms the customer’s confidence in its design and production technology and project-management capabilities. Yang Ming Marine Transport has traditionally placed most of its newbuilding orders with Japan’s Imabari Shipbuilding and Taiwan’s CSBC.

The vessels will feature Hanwha Ocean’s proprietary Type B LNG fuel tanks based on high-manganese steel. Because LNG remains liquid at minus 163 degrees Celsius, fuel tanks must withstand extremely low temperatures. Until now, expensive nickel-alloy steel or aluminum has been used primarily for this purpose.

High-manganese steel is a specialty steel made by adding large amounts of manganese to iron, allowing it to resist cracking even at extremely low temperatures. It can reduce costs while maintaining safety. Hanwha Ocean also plans to apply hull-form optimization technology to improve fuel economy and operational and cargo efficiency.

사진 확대 Hanwha Ocean CEO Hee-Chul Kim, third from right, and Yang Ming Marine Transport Chairman Feng-Ming Tsai, fourth from right, pose for a commemorative photo with officials from both companies after the signing ceremony held in Taiwan. [Hanwha Ocean]

The containership market is being reshaped around the replacement of aging vessels and the transition to eco-friendly fleets in response to International Maritime Organization (IMO) environmental regulations, following a period of large-scale fleet expansion. Geopolitical factors have added to the uncertainty. A Hanwha Ocean official said, “We actively responded to increased demand for new ships as the shipping and logistics environment changed rapidly due to the war in the Middle East.”

Hanwha Ocean CEO Hee-Chul Kim said, “The confidence in our design and production technology and project-execution capabilities, demonstrated through the first project, led to this large follow-up order just one year later.” Feng-Ming Tsai, chairman of Yang Ming Marine Transport, stated, “This contract demonstrates the two companies’ shared commitment to building a competitive and sustainable fleet.”

Since the beginning of this year, Hanwha Ocean has won orders for 17 very large crude carriers (VLCCs), six LNG carriers, six containerships, three very large ammonia carriers (VLACs), three VLGCs, and one wind turbine installation vessel (WTIV). The total stands at 38 vessels worth approximately $7.07 billion.

This article has been translated by GripLabs Mingo AI.