HJ Heavy Industries secured a 640 billion won ($467 million) contract to build four container ships for an undisclosed Oceania-based shipowner, the South Korean company announced Monday, as the global container shipping sector faces mounting overcapacity pressures.
The mid-sized shipbuilder will construct four 8,850 TEU vessels equipped with scrubbers and designed as methanol-ready ships at its Yeongdo facility in Busan. The vessels will be delivered sequentially by the end of February 2028, according to the company.
The order comes as container shipping faces massive overcapacity and intense competition threatening profitability in 2025, with 90% of new deliveries focused on mid-to-large vessels over 5,000 TEU. Industry analysts warn that oversupply concerns could persist as the global vessel orderbook recently hit record levels.
HJ Heavy Industries, formerly known as Hanjin Heavy Industries, returned to profitability in 2024 with an operating profit of 118 billion won after posting a 108.7 billion won loss in 2023. The company has positioned itself in the mid-sized container ship segment, targeting vessels between 5,500 and 9,000 TEU capacity that suit its main production facility’s limitations.
The company stated it has been building a reputation in the mid-sized ship sector by winning orders for container ships optimized for its Yeongdo Shipyard, where construction space constraints prevent building of larger vessels.
The timing of the contract reflects broader challenges facing the container shipping industry. Fleet capacity growth remains the dominant market force, with rates falling significantly despite continued disruptions from Red Sea diversions that absorb 8-10% of global capacity.
South Korean shipbuilders have benefited from industry consolidation, but questions remain about demand sustainability as economists project global GDP growth to moderate to 2.5% in 2025, potentially dampening future container trade volumes.
