4 ships worth 3.2 billion! US-listed shipowner increases orders for container ships

On September 9, South Korea's HJ Heavy Industries (formerly Hanjin Heavy Industries) announced the signing of a contract with shipowners in the Oceania region for the construction of four 8,850 TEU eco-friendly container ships. The total contract amount is 640 billion Korean won (approximately 460 million USD or 3.28 billion RMB), equivalent to a unit shipbuilding cost of 115 million USD.

These new ships are ordered by the US-listed shipowner Navios Maritime Partners, which has announced the related orders but has not disclosed the shipyard information. The new ships are expected to be delivered successively from the second half of 2027 to the first quarter of 2028. They will be leased to an anonymous operator for a lease term of 5.2 years with a daily charter rate of 44,100 USD; the charterer can choose to extend the lease for one year after the contract expires at a daily rate of 42,600 USD. This charter contract is expected to bring Navios approximately 335 to 395 million USD in revenue.

This type of container ship is an eco-friendly vessel designed to save energy and reduce greenhouse gas emissions. It adopts the latest environmental designs and is equipped with state-of-the-art equipment. Additionally, the ship features a methanol-ready design to prepare for future use of green methanol fuel. To comply with the International Maritime Organization (IMO) regulations on sulfur oxide emissions, a SOx scrubber will also be installed.

As a reference, Clarkson's data shows that the current newbuilding price for an 8,500/9,500 TEU conventional fuel container ship is about 106 million USD, a slight increase compared to 98 million USD in the same period last year.

In recent years, HJ Heavy Industries, which has advantages in container ship construction, has continuously developed related environmental protection technologies, significantly enhancing its capabilities in eco-friendly shipbuilding.

In 2022, HJ Heavy Industries received an order for six 5,500 TEU eco-friendly container ships from German asset management company MPC Capital and its partners. These container ships can save 40% fuel and feature a methanol-ready design. The design emphasizes high efficiency, adopts the DNV eco-label, and is built according to the third phase of the Ship Energy Efficiency Design Index and Tier III standards. This was also HJ Heavy Industries' first order for conventional commercial ships since 2015. By May 2024, all six methanol-ready 5,500 TEU eco-friendly container ships were successfully delivered, achieving great success in the eco-friendly ship market.

Additionally, in February 2023, HJ Heavy Industries signed a contract with South Korea's largest shipping company HMM for the construction of two 9,000 TEU methanol-powered container ships, with a total cost of 316.7 billion Korean won (approximately 247 million USD), planned for delivery between 2025 and 2026.

In 2023, HJ Heavy Industries also collaborated with world-class marine engine manufacturer Wartsila to successfully develop an 8,500 TEU eco-friendly container ship equipped with Carbon Capture and Storage (CCS) technology, aiming to ensure the early achievement of carbon-neutral eco-friendly shipbuilding capabilities. Furthermore, HJ Heavy Industries has accumulated technological strengths in LNG dual-fuel and ballast water-free ships, methanol-powered ships, and liquid hydrogen transport ships, laying the foundation to become a specialized eco-friendly shipbuilding company.

In 2024, HJ Heavy Industries successfully secured orders from multiple European shipowners for eight 7,900 TEU eco-friendly container ships, with a contract value of 1.2 trillion Korean won (approximately 890 million USD). These ships have a total length of 272 meters, a beam of 42.8 meters, and a service speed of 22 knots. They adopt the latest eco-friendly designs and are equipped with state-of-the-art equipment, capable of saving 40% fuel. Additionally, these ships feature a methanol-ready design. They carry the DNV eco-label and will be built according to the third phase of the Ship Energy Efficiency Design Index and IMO Tier III standards.

HJ Heavy Industries emphasized: "Our world-class technological capabilities in the field of eco-friendly container ships are the key to securing orders."

Currently, HJ Heavy Industries has made breakthroughs in eco-friendly ship technologies and medium-to-large container ships, including methanol-ready ships, methanol-powered ships, LNG dual-fuel ships, Carbon Capture and Storage (CCS) ships, ultra-large liquid ammonia carriers (VLAC), and LNG bunkering vessels. Moreover, the value of commercial and special ship orders secured in 2024 reached 1.75 trillion Korean won (approximately 8.75 billion RMB), setting a historical high and showing a strong development momentum.

HJ Heavy Industries' representative director Ryu Sang-chul stated: "The company's advantages in delivery schedules, specifications, and quality have won the favor of long-term customers, leading to continuous additional new ship orders. This further proves that HJ Heavy Industries' eco-friendly container ship technology strength has been recognized in the global market. We will repay the trust of shipowners by building high-quality eco-friendly ships and strictly adhering to delivery schedules."

Excluding the latest orders, Clarkson's data shows that HJ Heavy Industries currently holds orders for a total of 11 ships with about 920,000 deadweight tons, including 10 container ships and 1 LNG bunkering vessel, with deliveries scheduled through 2027.