In its pursuit to stay ahead of the curve, South Korea’s Hyundai Glovis aims to construct the largest fleet of car and truck carriers worldwide. This revolutionary initiative is a brainchild of Hyundai Motor Group’s shipping and logistics division, intent on reshaping the efficiency and dynamism of automobile logistics.
Pioneering a New Era in Freight Transportation
The ambitious blueprint outlines an estimated expenditure of around $1.84 billion on the construction of twelve 10,800 CEU vessels, fueled by LNG dual-fuel. marked for completion in 2027. Hyundai Glovis, a Seoul-based conglomerate renowned for its impressive fleet of 70 car carriers, also boasts an array of tankers, bulk carriers, and forthcoming entries in the gas shipping segment anticipated to commence operations next year.
Exemplary Expansion into the Automobile Industry
With a strategic eye for expansion, the company has spent the past few years broadening its horizons beyond Hyundai. Renowned automakers such as Volkswagen, Ford, and BMW have established partnerships with Hyundai Glovis, contributing to approximately 60% of its revenue in the previous year.
Leveraging a Post-Pandemic Surge in Car Demand
A marked scarcity of car carriers, resulting from a decade of limited orders, saw their value spike over the past year. A post-pandemic surge in global car demand catapulted carrier rates to unprecedented levels. This shift has consequently revived the car carrier order book, with owners primarily in China securing slots for super-sized vessels. Hyundai Glovis, however, is yet to disclose its proposed shipyard.
Competitors Militating for Market Share
Rival Oslo-listed car carrier operator, Wallenius Wilhelmsen – boasting an expansive fleet with around 125 ships – also has significant shipbuilding engagements fixed in China. An imminent arrival of 9,350 ceu methanol-fitted and ammonia-accommodating vessels from China Merchants Jinling Shipyard is slated for mid-2026. Interestingly, Wilhelmsen Holding also shares ownership in Hyundai Glovis, heralding an intriguing competitive landscape for the future of the freight transportation industry.
