Hanwha Ocean's U.S. subsidiary Hanwha Shipping is ramping up vessel orders and kicking off its entry into the shipping industry. As demand for transporting raw materials such as liquefied natural gas (LNG), oil, and more increases locally, Hanwha Shipping plans to directly acquire and operate ships.
Originally, Hanwha Shipping was merely a testing ground for the new technology vessels created by Hanwha Ocean, but it has now completely shifted its direction towards becoming a ship owner. Hanwha Group, which acquired a U.S. shipyard, aims to build a comprehensive ecosystem that encompasses the shipbuilding and shipping industries.
On the 9th, industry sources reported that Hanwha Shipping has placed an order for one very large crude carrier (VLCC) with its parent company, Hanwha Ocean. The vessel, which has a capacity of 300,000 deadweight tons (DWT), is due to be delivered by March 2027. DWT refers to the maximum amount that a ship can safely transport. The exact contract amount has not been disclosed.
Since its establishment in the U.S. in April of last year, Hanwha Shipping has placed a total of five ship orders with Hanwha Ocean. Last year, it signed contracts for the construction of two VLCCs, and this year it secured contracts for two LNG carriers. The total contract amount for the LNG carriers is 732.2 billion won, with delivery expected by the end of September 2027.
Hanwha Ocean is focusing on the development of eco-friendly and digital ship technology. The plan is to build vessels equipped with next-generation technology at Hanwha Ocean, and if Hanwha Shipping tests them without issues, they will be delivered to the ship owners. The ships ordered by Hanwha Shipping this time will be equipped with scrubbing devices that reduce exhaust emissions.
Hanwha Shipping is taking a step further by deciding to directly operate LNG carriers and oil carriers locally. The United States Trade Representative (USTR) announced regulations stating that a certain portion of LNG exported from the U.S. starting in 2028 must be transported by LNG carriers built in the U.S., which has set the direction for the business.
To date, the ships ordered by Hanwha Shipping are set to be built at a shipyard in Geoje and will be delivered as Korean-made vessels. There is also a possibility that ships will be constructed at the U.S. shipyard in the future, which would mean that vessels made in the U.S. would be acquired by a local shipping company. This aligns with the vision of the Donald Trump administration, which dreams of reviving the domestic shipbuilding and shipping industries.
Ryan Lynch, the representative of Hanwha Shipping, said in a recent interview with foreign media, "We expect that there will be a need for 5 to 7 U.S.-flagged LNG carriers by 2030. Hanwha Shipping will become a U.S. owner with capabilities in transporting oil, LNG, liquefied petroleum gas (LPG), and containers."