On October 16, Hyundai Merchant Marine (HMM) announced orders for 12 LNG-fueled dual-fuel container vessels with a capacity of 13,000 TEU from compatriot shipbuilders. The order was secured by HD Hyundai Heavy Industries and Hanwha Ocean, with a total value of approximately 3.5 trillion won (about $2.47 billion). Each vessel carries an average construction cost of roughly $206 million.
The 12 newly ordered container vessels are all environmentally friendly designs using LNG fuel, aiming to respond to the strengthened carbon emission regulations of the International Maritime Organization (IMO) and the European Union (EU).
Currently, LNG fuel is regarded as a low-carbon alternative fuel ready for immediate commercialization. According to DNV data, compared to traditional heavy fuel oil, this fuel can reduce greenhouse gas emissions by over 23%, nitrogen oxides (NOx) emissions by over 80%, and sulfur oxides (SOx) emissions by over 99%. Clarksons data indicates that approximately half of the new vessels ordered globally in 2024 will be powered by alternative fuels, with LNG fueling 70% of these.
HMM plans to further enhance the competitiveness of its eco-friendly fleet by adding 12 new LNG dual-fuel container vessels. The company’s fleet currently includes 9 methanol dual-fuel container vessels and 2 LNG dual-fuel vessels that are either in operation or under construction.
It is understood that the above 12 LNG dual-fuel container vessels represent HMM’s first newbuilding investment in approximately one year since announcing its “2030 Mid-to-Long-Term Strategy” in September 2024. At that time, the company outlined a fleet expansion plan centered on increasing capacity and advancing the transition to alternative fuels, while also emphasizing strategic priorities such as strengthening its global route network layout.
Notably, this marks HMM’s first major new shipbuilding project in seven years since it placing a “major order” in 2018.
In 2018, HMM placed orders for a total of 20 container vessels with three South Korean shipbuilders, including 12 vessels of the 24,000 TEU class and 8 vessels of the 16,000 TEU class. Subsequently, it has continued to prioritize Korean shipyards for its investments, including placing additional orders for 12 13,000 TEU container vessels in 2021 and 9 methanol dual-fuel 9,000 TEU container vessels in 2023.
HMM officials stated: “Against the backdrop of intensifying competition in the global shipping market, this large-scale investment represents a strategic decision to simultaneously achieve two key objectives: expanding our fleet capacity and enhancing our environmental competitiveness. Our company will continue to solidify the foundation for stable growth in accordance with its 2030 mid-to-long-term roadmap.”