German Shipping Giant Hapag-Lloyd Continues Expansion with South Korean Order

German container shipping heavyweight Hapag-Lloyd shows no signs of pausing orders as it turned to South Korea for another vessel batch.

The Hamburg-based company has allegedly placed an order for six 16,800 TEU boxships at Hanwa Ocean shipyard (formerly Daewoo Shipbuilding & Marine Engineering) in South Korea, according to Greek shipbroker Intermodal.

Hanwa Ocean told local media that “it is close” to securing the contract with the German shipping giant, however, no final decision has been made.

The vessels, which will have a liquefied natural gas (LNG) dual fuel propulsion, are planned for delivery from 2027 onwards.

Hapag-Lloyd will reportedly pay $200 million per unit, bringing the total value of the contract to $1.2 billion.

With the recent order, the world’s fifth-largest container shipping company made a long-expected comeback to the South Korean yard, distancing itself from Chinese shipbuilders this time.

To remind, in late 2020 and mid-2021, the European ocean carrier had ordered a dozen of new 23,500+ TEU ultra large container vessels (ULCVs) at the ex DSME yard. Last November, the 23,660 TEU flagship of the Hamburg Express class was christened at the Port of Hamburg.

In October last year, the shipping giant confirmed orders for 24 LNG dual-fuel containerships with two Chinese shipbuilders. As per the agreement, Yangzijiang Shipbuilding Group will build twelve 16,800 TEU vessels, while New Times Shipbuilding will construct twelve 9,200 TEU units, with deliveries set to start in 2027.

The containerships will feature low-emission, high-pressure liquefied gas dual-fuel engines that are “extremely fuel-efficient”. What is more, the newbuilds will be able to use biomethane and will be ammonia-ready.

Earlier this month, the carrier unveiled long-term green financing for the 24-strong containership fleet.

In other news, Hapag-Lloyd and its Danish counterpart Maersk launched the Gemini Cooperation earlier this month, intending to ”reshape” global container shipping.

Hapag-Lloyd has a fleet of 302 vessels totaling 2,357,116 TEU of which 130 are owned and 172 chartered. What is more, the company has 35 units in its order book, data provided by Alphaliner shows.