HD Korea Shipbuilding & Offshore Engineering (KSOE) is reportedly on the verge of securing a landmark container shipbuilding contract valued at over $3.5 billion with French shipbuilder CMA CGM. If finalized, this deal will allow KSOE to meet its annual order target in just six months, marking the fourth consecutive year of achieving this milestone early.
Industry sources reveal that HD KSOE recently signed a letter of intent (LOI) with CMA CGM to construct 20 container ships. This substantial contract would significantly boost KSOE’s already impressive order book.
Over the past 10 days, HD KSOE has received orders for 112 vessels, including one offshore unit, totaling $12.1 billion (approximately 16.83 trillion won). This achievement represents 89.7% of the company’s annual target of $13.5 billion. Securing this new contract will enable the company to exceed its yearly goal ahead of schedule.
The 112-vessel order includes a diverse range of ships: eight liquefied natural gas (LNG) carriers, 48 petrochemical carriers (PCs), 36 liquefied petroleum gas (LPG) and ammonia carriers, one ethane carrier, two liquefied carbon dioxide carriers, six very large crude carriers (VLCCs), three tankers, two pure car and truck carriers (PCTCs), one floating storage and regasification unit (FSRU), one offshore unit, and four specialty vessels.
This contract is particularly significant given the recent decline in container ship orders. The container ship market saw a surge in orders in 2021 and 2022 due to COVID-19-related disruptions but has since cooled. However, the recent Red Sea incident, which led to longer shipping routes and increased freight rates, has revived demand for new container ships.
HD KSOE anticipates further orders from other major shipping companies, including Germany’s Hapag-Lloyd, Israel’s ZIM, Switzerland’s MSC, and Denmark’s Maersk, indicating a potentially strong year ahead for the shipbuilding giant.
