HMM Adds $1.4B Order to Already Record Containership Orderbook
The orderbook for new containerships continues to set records, with HMM becoming the latest to place a sizable order. It is part of the carrier’s strategy to expand its container capacity toward a goal of 1.5 million TEU of capacity while it also pursues a “hub & spoke” strategy for containers as well as expansion in other segments, including dry bulk and tankers.
Last week, HMM reported its board had authorized a further shipbuilding order as well as additional vessel purchases. It moved quickly, reporting today, October 20, that it has placed a newbuilding order with HD Hyundai for eight 13,000 TEU vessels. Due starting in 2029, the vessels will be deployed on one of its flagship routes, sailing between the Far East, India, and the Mediterranean.
HD Hyundai reported the order is valued at $1.42 billion, with two of the ships to be built at HD Hyundai Heavy Industries’ yard in Ulsan and six at HD Hyundai Samho’s Yeongam shipyard. The vessels will measure 337 meters (1,105 feet) in length and be outfitted with dual-fuel propulsion engines using both LNG and conventional marine fuel.
At the same time, HMM reports it concluded a deal to acquire four feeder vessels (three with 2,800 TEU capacity and one with 1,700 TEU capacity) as part of its regional feeder network strategy. The company recently said it would be focusing on mid-sized and smaller vessels as opposed to ultra-large containerships in the next phase of its growth strategy.
HMM is targeting expanding its capacity to approximately 1.5 million TEU. When it launched the growth strategy, the carrier was below 1 million TEU, but it has now exceeded that benchmark with 1.034 million TEU based on Alphaliner’s calculation, with a total of 97 vessels (72 owned/25 chartered). Overall, the company reports it has invested approximately $4.5 billion this year in fleet expansion, logistics, infrastructure, and future technologies.
With this order, along with a recent order from MSC Mediterranean Shipping Company for 20 ultra-large 24,000 TEU ships, the analysts at Linerlytica noted that the containership orderbook ”has jumped to a post-2009 peak of 46.5 percent." They report the orderbook capacity has reached 16.2 million TEU, despite an apparent peak in spot market freight rates.
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Many in the industry have expressed concern about a potential near-term overcapacity. In addition to the record orderbook, expectations are for a possible softening of demand. In addition, as vessels continue to switch back to routing through the Suez Canal and Red Sea, it is expected to free up capacity that had been required to maintain routes with the longer sailing around South Africa.
For HD Hyundai, the demand for containerships along with LNG carriers is continuing to extend out its orderbook. The shipbuilder reported with this order it has achieved nearly 87 percent of its annual target. So far, in 2026, HD Hyundai has booked orders for 182 vessels worth more than $20 billion.
