Hanwha Ocean Co. secured a 2.33 trillion won ($1.61 billion) order from Taiwan’s Evergreen Marine Corp. to build six eco-friendly ultra-large container ships, marking the South Korean shipbuilder’s return to a segment long dominated by Chinese rivals.
The contract for the 24,000 TEU vessels with LNG dual-fuel capability represents 31.4% of Hanwha’s projected 2024 revenue and signals a potential shift in the global shipbuilding landscape.
Korean shipyards, which once held near-monopoly status in large container ship construction between 2011 and 2017, lost significant market share to Chinese competitors who leveraged government subsidies to undercut prices. By 2023, Chinese shipbuilders had gained almost complete control of the sector.
Industry dynamics have recently tilted in South Korea’s favor due to several factors. Global shipping disruptions in the Red Sea and Panama Canal have increased demand, while vessel prices have risen nearly 28% year-over-year to $275 million per ship. Stricter environmental regulations have also boosted interest in eco-friendly vessels like those ordered by Evergreen.
Further aiding Korean shipbuilders is potential U.S. action against Chinese vessels, including proposed $1.5 million fees for Chinese-built ships docking at American ports and the recent blacklisting of China’s largest shipbuilding conglomerate.
