Achieve 90% of annual target! South Korean shipbuilding and ocean industry has seen a stronger trend in accepting orders this year than last year

On June 10th, HD Hyundai (formerly Hyundai Heavy Industries Group) shipbuilding holding company HD Korea Shipbuilding Marine announced that it had signed a construction contract with shipowners in the Middle East for two 50000 deadweight ton MR type oil tankers, with a total contract amount of approximately KRW 148.4 billion (approximately USD 108 million).

These two new ships will be built by HD Hyundai Oita and are scheduled to be delivered gradually before the end of December 2026. It is worth mentioning that the single ship cost of these two MR type finished oil tankers reached approximately $54 million, exceeding the $51.76 million cost of the same type of vessel undertaken by the company in April this year. Meanwhile, the delivery date is within 2026.

Previously, HD Hyundai Oita undertook an order for four MR tankers from South Korean shipowner Pan Ocean on April 2 this year, worth 278.9 billion Korean won (approximately 20704 million US dollars). This is also the second time since September 2008 that the cost of MR oil tankers has exceeded the $50 million mark. Meanwhile, the delivery date for these four new ships is before August 31, 2026
According to industry insiders in South Korea, HD Hyundai Oita's ability to continuously secure high priced MR tanker orders is closely related to its technological capabilities and construction efficiency that surpass its competitors. Analysis suggests that the rapid delivery period in 2026 has had a positive impact on the prices of these two orders. Therefore, while ensuring orders for the next three years or more, major South Korean shipping companies will become a very important means of profitability if they can offer the magic weapon of "fast delivery time".

It is reported that, including this contract, HD Hyundai Oita (including its Vietnamese subsidiary Hyundai Vietnam Shipbuilding) has taken on 34 orders for MR type finished oil tankers so far this year, with over 60 orders held, ranking first among global shipping companies. In addition, HD Hyundai Oita has delivered over 630 MR type ships, also far ahead of other shipyards. Especially considering that the number of MR tankers delivered to the global market in the next 2-3 years is not high, HD Hyundai Oita is very hopeful to achieve performance improvement in this type of ship market.

Including the two new ship orders undertaken this year, HD Korea Shipbuilding Ocean has undertaken 112 ship and sea equipment orders so far this year, with a total contract amount of 12.11 billion US dollars (approximately 87.83 billion yuan), completing approximately 89.7% of its annual order target of 13.5 billion US dollars. This includes 8 large LNG ships, 28 VLGC/VLAC, 8 LPG ships, 48 product oil ships, 1 VLEC, 6 VLCC, 3 crude oil transport ships, 2 LCO2 transport ships, 2 automobile transport ships, 4 special ships, 1 offshore platform upper module, and 1 FSRU.

According to statistical data, during the same period last year, HD South Korea Shipbuilding Marine undertook 93 new ship orders, including 16 LNG transport ships, 14 LPG transport ships, 29 container ships, 29 finished oil tankers, 3 oil tankers, and 2 medium-sized natural gas tankers. The cumulative order amount was 11.42 billion US dollars, which is 73% of the annual order target of 15.74 billion US dollars. It can be seen that HD Korea Shipbuilding Ocean's order taking momentum since the beginning of this year has exceeded the same period last year, with an increase of 19 ships in terms of quantity and 690 million US dollars in terms of amount.