Hyundai Merchant Marine orders five VLCCs

Hyundai Merchant Marine (HMM) has signed a letter of intent (LOI) with Daewoo Shipbuilding & Marine Engineering (DSME) for the construction of five 300,000 dwt very large crude carriers (VLCCs) with an option of five more vessels.

HMM formed a ‘newbuilding examination committee’ at the end of last year, and has thoroughly reviewed all the conditions for newbuilding including demand, type & number of vessels, market trend, and investment feasibility.

HMM CEO, Chang-keun Yoo said: “We currently operate 12 VLCCs which have been foundational to stable profits and enhancing sales competitiveness. We thought this year is the right time to order new VLCCs at historically low newbuilding prices. HMM’s fleet competitiveness in the medium and long run will be further strengthened through the New Shipbuilding Program.”

A final agreement will be concluded by the end of July, and a discussion about LNG carrier engine and eco-friendly technology will also be had.

This newbuilding deal is the first case of using the New Shipbuilding Program with a pot of $2.28bn, which the Korean government announced last October to support the shipping industry.

Apart from VLCCs, HMM also plans to order small to medium sized container ships.

For more information visit www.hmm21.com

17th April 2017