Korea Shipbuilding & Offshore Engineering Wins Order for Ultra-Large Container Ship Worth 637 Billion KRW

[Asia Economy Reporter Hwang Yoon-joo] Korea Shipbuilding & Offshore Engineering, the intermediate holding company for shipbuilding under Hyundai Heavy Industries Group, has secured an order for five ultra-large container ships worth a total of 637 billion KRW.

Korea Shipbuilding & Offshore Engineering announced on the 26th that it recently signed a construction contract with Taiwan-based shipping company Wan Hai Lines for five ultra-large container ships with a capacity of 13,200 TEU each.

The newly ordered ultra-large container ships measure 335 meters in length, 51 meters in width, and 27.3 meters in height. They will be built at Hyundai Heavy Industries in Ulsan and are scheduled to be delivered sequentially to the shipowner starting from the first half of 2023. Notably, these vessels are equipped with Selective Catalytic Reduction (SCR) systems to reduce nitrogen oxide emissions, complying with the International Maritime Organization (IMO) environmental regulations.

The Shanghai Containerized Freight Index (SCFI), a global benchmark for container ship freight rates, recorded its highest level since 2009 at 2,885 points (as of January 15). On the 19th, it stood at 2,584 points, nearly tripling compared to the same period last year (898 points).

As container ship freight rates remain high, the newbuilding price index is also on the rise. According to Clarkson Research, a shipbuilding and shipping market research firm, the container ship newbuilding price index has increased by about 3% monthly, recording 75.4 in December last year, 76.4 in January, 77.4 in February, and 82 in March this year.

A representative from Korea Shipbuilding & Offshore Engineering stated, "With expectations of increased cargo volume and rising freight rates, inquiries for orders across various ship types, including container ships, are actively continuing. We will strengthen our order capabilities based on technological development efforts to solidify our position in the global market."

This content was produced with the assistance of AI translation services.