HMM seals massive deal with CSSC for dual-fuel PCTC behemoths backed by Hyundai Glovis charter

South Korean shipping giant HMM has inked a landmark contract with China State Shipbuilding Corporation (CSSC) for the construction of up to ten 10,800 CEU LNG dual fuel car carriers.

Image credit: Guangzhou Shipyard International (GSI)

The vessels are set to be constructed at CSSC’s Guangzhou Shipyard International (GSI) for a price of $732 million.

Under the terms of the contract, HMM has secured six firm orders for the LNG-powered car carriers, with an option for an additional four units.

The dual-fuel car carriers are designed to carry up to 10,800 car equivalent units (CEU), making them the world’s largest, and will feature cutting-edge technology to harness the benefits of LNG propulsion. The car carriers are being ordered on the back of a long-term charter with Hyundai Glovis.

The order was signed at the Marintec China 2023 event, which opened in Shanghai on Tuesday.

Offshore Energy has approached HMM for a statement on the matter.

An HMM Spokesperson told our publication that “HMM recently ordered four PCTCs with a Chinese shipyard and other details can not be confirmed due to the confidentiality agreement with related parties.”

“In 2023, HMM ordered a total of seven PCTCs – three in the first half and the other four in the second half of this year,” the statement reads.

The order is being placed as part of HMM’s diversification efforts as the company endeavors to mitigate earnings risks stemming from the inherent volatility that characterizes the container shipping industry.

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The latest order is part of Hyundai Glovis’ strategy of acquiring a total of 12 LNG dual-fuel car carrier newbuilds for which it has allocated a $1.85 billion budget.

The first batch from the series has already been ordered in a partnership between Hyudai Glovis and Saspan Corporation.

Namely, Seaspan has signed the construction contract with China State Shipbuilding Corporation’s Shanghai Waigaoqiao Shipbuilding. The deal entails the construction of six firm and four optional 10,800 CEU dual-fuel PCTCs.

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Hyundai Glovis has said that it is targeting delivery in 2027 allowing for an operating service of 20 years for the ships.