Hyundai Glovis Gears Up for Orders of the Globe’s Largest Vehicle Carriers

Hyundai Glovis Sets Sail Towards Eco-Friendly Megacar Carriers: A Bold Vision for the Future of Maritime Transport

Hyundai Glovis, the prominent South Korean entity under the umbrella of the Hyundai Motor Group, has unveiled ambitious plans to construct the world’s largest pure car and truck carriers. The company, headquartered in Seoul, is renowned for its extensive car carrier fleet comprising more than 70 vessels, and it also boasts a diversified portfolio that encompasses tankers, bulk carriers, and upcoming newbuilds within the gas shipping sector, scheduled for market entry in the upcoming year.

In a formal announcement filed with a local stock exchange, Hyundai Glovis disclosed its intention to allocate an approximate investment of $1.84 billion towards the realization of a fleet of twelve LNG dual-fuel vessels. These vessels, designed to accommodate a remarkable 10,800 car equivalent units (CEU), are slated for delivery in 2027. This visionary undertaking underscores the company’s commitment to innovation and sustainability, as the adoption of LNG dual-fuel technology is a critical step towards reducing the environmental footprint of maritime transport.

This strategic move comes at a juncture when the global automotive logistics landscape is witnessing a transformation. Hyundai Glovis has strategically broadened its clientele to encompass renowned automakers such as Volkswagen, Ford, and BMW. These partnerships have become integral to the company’s revenue stream, contributing significantly, with approximately 60% of the total revenue generated in the past year.

The decision to invest in the construction of these colossal vessels is influenced by a growing shortage of car carriers, attributable to a decade of limited orders within the industry. The shortage has translated into a surge in the value of these vessels over the past year, with shipping rates attaining record levels, bolstered by a robust post-pandemic rebound in global car demand. As a result, the car carrier orderbook is expanding rapidly, with ship owners securing construction slots primarily in China for the creation of supersized vessels. This trend has even prompted car manufacturers to explore opportunities in the container carrier sector, driven by the weakened rates in car carrier shipping.

At present, Hyundai Glovis has yet to disclose its choice of shipyard for the construction of these remarkable vessels. Notably, Wallenius Wilhelmsen, an Oslo-listed car carrier operator boasting a fleet of approximately 125 vessels, has also made substantial investments in the sector. They have ordered some of the largest units for construction in China, with plans for the delivery of 9,350 CEU vessels that are methanol-capable and ammonia-ready, scheduled to commence in mid-2026 at China Merchants Jinling Shipyard. It’s worth noting that Wilh. Wilhelmsen Holding, the parent company, also maintains a stake in Hyundai Glovis, emphasizing the interconnectedness of the global maritime industry.

Hyundai Glovis’ endeavor to construct the world’s largest pure car and truck carriers signifies a remarkable leap forward in the maritime sector, heralding a new era of efficient and environmentally conscious vehicle transport. As the global automotive and shipping industries continue to evolve, this initiative underscores the commitment to sustainability and innovation within the South Korean maritime landscape.

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