Hanwha Set to Secure $2.2 Billion Container Ship Deal with Maersk

Hanwha Ocean Co., South Korea’s third-largest shipbuilder, is poised to secure its first container ship order from A.P. Møller – Mærsk A/S, the world's second-largest shipping company, in a deal valued at up to $2.2 billion, according to KED Global. Under the agreement, Hanwha Ocean will build six container ships of the 16,000-twenty-foot equivalent unit (TEU) class, each priced around $220 million. There is also an option for Maersk to order four additional vessels. This move follows Maersk's recent strategic shift towards LNG dual-fueled ships, having previously sought methanol-powered alternatives.

The deal with Maersk is part of a broader order for 32 container ships, with Hanwha Ocean expected to deliver 10 units. China’s New Times Shipbuilding Co. is set to construct 12 of the vessels, while Yangzijiang Shipbuilding will handle the remaining ships, as per media reports.

Earlier this year, Hanwha Ocean, previously known as Daewoo Shipbuilding & Marine Engineering Co., exited the container shipbuilding sector due to financial losses exacerbated by rising labor and raw material costs and intense competition from Chinese shipbuilders. The company last won a container ship contract in October 2022. However, Hanwha Ocean has re-entered the market to capitalize on the increasing prices of container ships. As of July, the average price for 22,000-24,000 TEU container ships was $272 million, compared to $262.5 million for LNG carriers with a 174,000 cubic meter capacity.

Concerns had arisen about Hanwha Ocean’s idle docks due to fewer orders compared to competitors, especially following the group's $1.5 billion acquisition of Daewoo in 2023. However, the company is now focusing on filling its docks by securing container ship orders in the latter half of the year.

Looking ahead, Hanwha Ocean aims to secure further orders from Hapag-Lloyd, the fifth-largest global shipping company, which is expected to place up to $5.4 billion in contracts for LNG dual-fueled container ships. Hapag-Lloyd plans to order 20 vessels of the 15,000-16,000 TEU class and 8,000-9,000 TEU class, with options for additional ships. Hanwha Ocean will be competing against HD Hyundai Heavy Industries Co. and five Chinese shipbuilders for this contract. Despite concerns about a potential oversupply of container ships, Hapag-Lloyd remains optimistic due to rising shipping demand and the need to replace older vessels.

A.P. Møller – Mærsk A/S, commonly referred to as Maersk, is a Danish shipping and logistics firm established in 1904 by Arnold Peter Møller and his father, Peter Mærsk Møller. The company’s operations encompass shipping, port management, supply chain logistics, and warehousing.