Recently, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding business, disclosed that the contract for the construction of two 88,000 cubic meter very large ammonia carriers (VLACs) signed by the company with an undisclosed Oceania shipowner in October 2024 has been changed. The renewed order is for two 157,000 dwt Suezmax tankers.
HD KSOE did not disclose the shipowner’s information, but according to industry sources, the owner of the reorder is Cido Shipping, a South Korean shipowner based in Hong Kong.
According to the order information published by HD KSOE on October 15, 2024, two 88,000 cubic meter VLACs are being built by HD Hyundai Heavy Industries for delivery in September 2027, with a total order value of approximately US$250 million and a single-vessel construction cost of approximately US$125 million. The revised contract value of the Suezmax tankers is about US$172 million, with a single-vessel cost of about US$86 million, and is scheduled for delivery in the second quarter of 2027.
After this order change, the value of newbuilding contracts held by HD Hyundai Heavy Industries in Cido Shipping is reduced by about US$78 million. And Cido Shipping’s Suezmax tanker orders from HD Hyundai Heavy Industries have increased to six, with another four to be announced in July 2024. The cost of each vessel is approximately US$91 million, and the total order value is approximately US$364 million. The new vessels will be equipped with scrubbers and are expected to be delivered in 2027.
As of May 23, HD KSOE has received orders for 55 new vessels worth about US $6.7 billion this year, achieving about 37 percent of its annual order target of US $18.05 billion. By ship type, these include one LNG carrier, six LNG refueling vessels, six liquefied petroleum gas (LPG)/ammonia carriers, two ethane carriers, 34 container ships and six tankers.
Cido Shipping, a diversified shipowner with a fleet consisting mainly of tankers, bulk carriers, car carriers and LPG carriers, is said to have been active in the newbuilding market. According to the latest annual report released by shipbroker BRS Shipbrokers, the company is ranked fourth in the world in terms of newbuilding activity, and has placed orders for the construction of about 44 vessels with a total deadweight of 2.8 million tons.
Newbuilding interest in the VLAC vessel type has waned in recent months as the market focus has shifted to container ships and crude oil tankers, with BRS Shipbrokers counting 56 VLGCs/VLACs on order last year.
In contrast, the Suezmax sector has maintained a stronger momentum, with Allied Shipbroking reporting that 22 Suezmaxes with a total deadweight of 3.4 million tonnes have been ordered so far in 2025.
BRS Shipbrokers noted that 135 Suezmax tankers are currently under construction, representing nearly 20% of the active fleet by number of vessels, with the majority scheduled for delivery in 2026 and 2027.