South Korea’s shipbuilder Hanwha Ocean has failed to deliver three VLGCs to schedule.
In an announcement on Tuesday, the Okpo-based shipbuilder — which took over Daewoo Shipbuilding & Marine Engineering in May — said it has postponed the delivery of the newbuildings from 31 October 2023 to 15 March next year.
The owners of the three VLGCs were not named but Hanwha said it is speaking with European shipowners. It added that the gas carriers were contracted by DSME.
Hanwha said the delayed delivery has been caused by hold-ups in the production and delivery of blocks and equipment by its partners.
TradeWinds reported that the yard — then named DSME — inked VLGC orders with three separate shipping companies between late 2020 and the first half of 2021.
South Korea’s Hyundai LNG Shipping is believed to have contracted two VLGCs, while Zodiac Maritime ordered three ships and John Fredriksen-controlled Avance Gas four ships.
At the time of ordering, the delivery date for Hyundai LNG Shipping was reported to be by the fourth quarter of 2023 while Zodiac’s trio was scheduled for between September 2022 and October 2023.
Avance Gas’ quartet was lined up for delivery between the fourth quarter of 2022 and into 2023.
Clarksons’ Shipping Intelligence Network shows Hyundai LNG Shipping has taken delivery of one VLGC — the 91,000-cbm HLS Emerald — in July this year. The second newbuilding is due to be delivered in 2024.
SIN lists Zodiac with one Hanwha-built VLGC — the 91,000-cbm Danube River, which was handed over in August 2023. The Eyal Ofer-led company is scheduled to take delivery of one of its two remaining newbuildings this year, with the second to follow in 2024. However, those following the vessels indicate that both are likely to be pushed into the new year.
Avance took delivery of two VLGCs — the Avance Rigel and Avance Avior — in February and May 2023, respectively. The company had already indicated in its presentations that the delivery of the remaining two newbuildings would be pushed into 2024.
Labour strikes
Shipbuilding players following Hanwha suggested that major labour strikes, which took place at the shipyard last year, were one of the reasons that led to the delays in the delivery of the VLGCs.
More generally, market players are reporting widespread delays across newbuilding segments. They blame the large number of orders taken by South Korean yards coupled with ongoing shortages of skilled shipyard workers for the delays.
One described the VLGG hold-ups at Hanwha as not unusually long but somewhat out of the ordinary for yards that normally deliver vessels on time.
Another indicated that shipyards, which will need to compensate owners contractually for delayed deliveries, may find it cheaper to pay up for VLGC tonnage than large container ships or LNG carriers.
