New $2.6B Containership Order in Korea Linked to CMA CGM

The boom in containership construction and the transition to alternative fuels continues with South Korea’s HD Korea Shipbuilding & Offshore Engineering reporting its first order of 2025. The shipbuilder which is part of HD Hyundai booked an order valued at approximately $2.58 billion which is being widely linked to French shipping giant CMA CGM Group.

Reports from South Korea reported a letter of intent was in place and the industry was broadly reporting the order as a follow-on move by CMA CGM which continues to be at the forefront of the move to LNG dual-fuel vessels. KSOE provided few details other than the order is for 12 “mega” containerships which will be delivered by December 2028.

Media reports indicate the vessels will each have a capacity of 15,500 TEU with deliveries commencing in late 2027. It follows CMA CGM’s order in the second quarter of 2024 order for a dozen 15,000 TEU liquefied natural gas vessels from Hyundai Heavy Industries.

CMA CGM, which is currently ranked third with a capacity of over 3.8 million TEU, has been investing in the energy transition as part of a fleet modernization and expansion program. As of the third quarter of 2024, the group highlighted more than 40 operational alternative fuel vessels and a total investment of $18 billion for 131 vessels by 2028 that will be capable of running on low-carbon energy, including biomethane, biomethanol, and synthetic fuels.

The new order represents a strong start for HD KSOE which announced a target of $18.05 billion for orders in 2025, which while a 34 percent increase over the 2024 target projects a decline in total orders versus those booked in 2024. The group reported orders valued at over $20 billion in 2024. This first order of the year represents 14 percent of the group’s target for 2025.

The order continues the strong buildout for LNG-powered vessels and specifically containerships. DNV’s Alternative Fuel Insight database shows a total of 641 LNG-fueled vessels with 142 containerships in service. It reports LNG represents 10 percent of the current order flow and based on orders, the LNG-fueled fleet will double to 1,273 vessels by 2030.

Speaking at the Davos Forum in Switzerland this week, Executive Vice President of HD Hyundai Chung Ki-sun pointed to the continuing efforts in shipbuilding to lead the transition to alternative fuels. The group is focusing on a digital transformation outlining its blueprint for the future of the shipyards. HD Hyundai is partnered with big data company Palantir Technologies and highlighted a strategy for a 30 percent improvement in productivity and a 30 percent reduction in CO2 emissions by 2030.