Hanwha Places Largest U.S. Commercial Ship Order in Over Two Decades

Hanwha Shipping, a U.S. subsidiary of Hanwha Ocean, has placed an order for 10 medium range (MR) oil and chemical tankers from its affiliate, Hanwha Philly Shipyard, marking the largest U.S. commercial vessel order in over two decades. The first tanker is expected to be delivered by early 2029, with the entire order representing the highest-value commercial contract seen at U.S. shipyards in recent history.

In addition to the tanker order, Hanwha Shipping has exercised an option to order a second liquified natural gas (LNG) carrier, doubling the U.S. orderbook for LNG carriers to the highest level since the 1970s. This follows last month’s contract signing for the first U.S.-ordered, export-market-viable LNG carrier in almost 50 years.

Alongside the order, Hanwha this week announced a $5 billion investment to boost the shipyard’s production capacity by installing additional docks and quays. The company also plans to evaluate construction of a new block assembly facility. These improvements could increase Hanwha Philly Shipyard’s annual production from fewer than two vessels to as many as 20.

“We are able to order these U.S.-made MR tankers because of Hanwha’s investment in building a world-class shipyard in Philadelphia,” said Ryan Lynch, President & CEO of Houston-based Hanwha Shipping. “Hanwha has made a long-term commitment to bringing cutting-edge technology from Korea to the Hanwha Philly Shipyard that will create thousands of good, advanced manufacturing jobs in the United States and spearhead the revitalization of America’s maritime industrial base.”

The MR vessels will be fitted to transport crude oil, refined petroleum, and chemical products, significantly expanding the U.S. Jones Act fleet of U.S.-built, U.S.-owned, and U.S.-crewed vessels operating between U.S. ports. These new vessels will strengthen the U.S. defense industrial supply chain and enhance the ability of U.S. businesses to access foreign export markets.

Both the LNG carriers will be constructed through a joint model between Hanwha Ocean and Hanwha Philly Shipyard as part of the U.S.-Korea partnership. While a “significant portion” of construction will occur at Hanwha Ocean’s Geoje shipyard in Korea, Hanwha Philly Shipyard will handle U.S. regulatory compliance and safety certifications. The vessels will be used to export U.S.-sourced LNG.

Hanwha, a global conglomerate with significant shipbuilding operations in both Korea and the U.S., acquired Philly Shipyard for $100 million last December. Since then, the company has focused on revitalizing the facility, making substantial investments in expanding its capabilities through technological advancements, workforce training, and smart systems.

The shipyard has a strong track record, having delivered 30 commercial vessels since 2003, including six container vessels, 22 product tankers, 2 aframax tankers and 3 repair vessels. It also has an ongoing contract with TOTE Services for the construction of National Security Multi-Mission Vessels for the U.S. Maritime Administration, with three already delivered.

This substantial order represents a significant step in Hanwha’s stated mission to increase U.S. maritime capacity and reindustrialize America’s maritime sector.

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