In Taiwan, Hanwha Ocean secured a contract worth approximately 2.3 trillion KRW for container ships. On the 17th, Hanwha Ocean announced it had won an order for six ultra-large 24,000 TEU container ships from Evergreen, a global shipping company. Each ship is priced at 388.1 billion KRW, totaling 2.3286 trillion KRW, which accounts for 31.3% of Hanwha Ocean’s 2023 revenue of 7.4083 trillion KRW.
The newly ordered container ships are 400 meters long and 61.5 meters wide. They incorporate Hanwha Ocean’s latest environmentally friendly technologies, including a dual-fuel LNG engine, shaft generator motor system (SGM), and air lubrication system (ALS). A representative from Hanwha Ocean remarked that this was the highest price per ship among recent contracts for similar container ships.
Evergreen, the world’s largest container shipping company with a fleet of over 200 vessels, has established its first partnership with Hanwha Ocean through this contract, securing a new client. As the maritime industry rapidly adopts LNG and next-generation eco-friendly fuel propulsion ships due to stricter environmental regulations, Hanwha Ocean plans to establish a long-term business relationship with Evergreen.
Hanwha Ocean boasts the experience of constructing the most ultra-large container ships in the world. As of late February, according to Clarkson Research statistics, there are 358 ultra-large container ships of 17,000 TEU and above currently in operation worldwide. Hanwha Ocean has built the most, 72, at a single shipyard, holding the number one market share.
Since 2022, the 24,000 TEU container ship market has been dominated by Chinese shipyards, leveraging low labor costs for competitive pricing. However, Hanwha Ocean aims to increase its order book for container ships with its environmentally friendly technology and differentiated design capabilities. The competitive landscape is expected to shift due to the heightened scrutiny of China’s shipbuilding industry following Donald Trump’s presidency. The U.S. has placed Chinese state-owned shipbuilder CSSC on a blacklist and is considering imposing port fees on ships built in or registered under China, charging up to 1.5 million USD (about 2.1 billion KRW) per port docking. This is likely to increase the burden for shipping companies opting for Chinese ships.
Kim Hee-chul, CEO of Hanwha Ocean, expressed gratitude to the clients for entrusting their orders based on Hanwha Ocean’s technological capability, stating the company aims to continue leading the eco-friendly ultra-large container ship market with their differentiated technology.