What is the story about?
What's Happening?
Hanwha Shipping, a subsidiary of South Korea's Hanwha Ocean, has announced plans for the largest U.S. commercial vessel order in over 20 years. The initiative includes the construction of 10 medium-range oil and chemical tankers at the Hanwha Philly Shipyard in Philadelphia. The first tanker is expected to be delivered by early 2029. This order aims to expand the U.S. Jones Act fleet, which consists of U.S.-built, owned, and crewed vessels operating between U.S. ports. Hanwha Shipping also plans to build the first modern U.S. LNG carriers for the international export market, responding to a plan requiring U.S. LNG exports to be transported on U.S. ships.
Why It's Important?
This development is significant for the U.S. maritime industry, as it represents a substantial investment in domestic shipbuilding capabilities. The expansion of the Jones Act fleet will enhance U.S. energy security and maritime industrial base. The initiative is part of a $5 billion infrastructure plan to increase shipyard capacity and create thousands of advanced manufacturing jobs. By transferring advanced shipbuilding technologies from Korea, Hanwha aims to strengthen the resilience of the U.S. shipping ecosystem and support the growth of the maritime industry.
What's Next?
Hanwha Shipping plans to increase the annual capacity of the shipyard from less than two vessels to up to 20, with additional docks and quays. The company is also considering building a new block assembly facility for LNG carriers and naval vessels. This expansion is expected to create significant employment opportunities and contribute to the revitalization of the U.S. maritime industrial base.
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