HD Hyundai-ECO alliance targets US-built LNG-fueled boxships by 2028

South Korean conglomerate HD Hyundai has launched a strategic collaboration with Tampa Ship, a U.S. shipyard and an affiliate of Edison Chouest Offshore (ECO), to construct LNG-fueled containerships in the U.S., aiming for first deliveries as early as 2028.

As disclosed, HD Hyundai and Tampa Ship recently agreed to establish a multi-faceted alliance to build medium-sized LNG dual-fuel containerships at the U.S. shipyard.

The collaboration envisions HD Hyundai providing support to Tampa Ship in vessel design, procurement of specialized equipment, and transfer of advanced shipbuilding technology.

The Korean shipbuilder will also participate in the fabrication of certain ship blocks and invest in technical infrastructure to enhance Tampa Ship’s capability.

Looking ahead, the partners intend to explore further opportunities beyond commercial containerships, including collaboration on other potential fleet classes as well as heavy industrial port equipment.

“The United States is a strong ally and an important business partner for us,” stated an official from HD Hyundai. “Through our collaboration with ECO, we aim to actively support U.S. efforts to revitalize its shipbuilding industry and strengthen national security.”

The collaboration comes amid U.S. endeavors to revitalize its shipbuilding industry and address the shortage of domestically constructed vessels. According to Clarksons Research, U.S. yards received orders for only three 3,600 TEU-class containerships between 2022 and 2024.

Earlier this year, the South Korean shipbuilding industry and the United States Trade Representative (USTR) initiated talks on opportunities for vessel construction cooperation between the two nations.

Described as a “historic moment”, discussions were held regarding the ongoing partnership between HD Hyundai and U.S. defense shipbuilder Huntington Ingalls, part of Huntington Ingalls Industries (HII), with proposals to further the cooperation, through multiple initiatives, such as joint technology development, vessel construction projects, and workforce training programs.