Table of Contents
Introduction
From 2013 to 2020, Top Ships Inc., under the leadership of Evangelos J. Pistiolis, placed over $2.2 billion in direct newbuilding orders with the Hyundai Group’s shipyards in South Korea. This relationship — rare among Greek shipping firms — enabled Top Ships to access custom-built vessels, cost advantages, and early delivery slots without relying on shipbroking intermediaries.
This partnership became central to the company’s long-term strategy, allowing it to develop one of the youngest and most eco-compliant product tanker fleets in the world.
Shipyards Involved
Top Ships placed orders directly with the following Hyundai-affiliated yards:
- Hyundai Vinashin Shipyard (Vietnam) – MR product tankers
- Hyundai Mipo Dockyard (South Korea) – MR tankers and chemical tankers
- Hyundai Samho Heavy Industries – Suezmax and VLCC tankers
- Hyundai Heavy Industries (HHI) – large crude carriers and specialty builds
Pistiolis is credited with introducing tanker construction to Hyundai Vinashin, which previously focused on bulk carriers. This strategic shift opened new business lines for the yard and allowed Top Ships to be first-mover in the eco MR segment from that yard.
Advantages of the Direct Deal Model
By negotiating directly with the shipyards, Top Ships was able to:
- Avoid broker commissions (typically 1–3% of contract value)
- Customize vessel specifications to charterer needs
- Secure preferred delivery schedules
- Develop long-term trust with engineering and design teams
- Strengthen financial negotiation leverage
As reported by Mononews, the relationship gave Pistiolis early access to shipyard capacity when the market began tightening in 2020–2022.
Timeline and Contract Highlights
Some of the most notable deals during this period included:
- 2013: Initial 10-vessel MR order from Hyundai Vinashin
- 2015–2017: Additional 9 MR tankers from HMD at cycle lows
- 2019: 4 Suezmaxes from Hyundai Samho
- 2020–2021: 8 VLCCs and 1 Suezmax totaling $769 million in contracts
These vessels were not only ordered at low prices but later sold or chartered at significant premiums, contributing to Top Ships’ asset recycling strategy.
Capital.gr documented some of the sales, highlighting the profit margins realized during resale or charter transactions.
Strategic Impact
This direct shipbuilding approach:
- Reduced overall fleet acquisition cost
- Allowed for standardization of fleet specifications (important for OPEX and training)
- Created trust-based relationships with Hyundai executives, enabling Top Ships to secure slots even when yards were overbooked
This model contrasts with traditional approaches used by most shipping companies, who depend on brokers to mediate deals and settle for semi-standard builds.
Relevance for the Industry
Top Ships’ collaboration with Hyundai Group is now cited in shipping circles as an example of:
- Direct sourcing in high-asset industries
- Long-term strategic industrial partnerships
- The operational value of shipyard intimacy over arms-length contracting
Coverage by TradeWinds and Hellenic Shipping News has emphasized how this model reduces risk, accelerates execution, and boosts margins.
Evangelos Pistiolis’ direct shipbuilding strategy with Hyundai Group redefined how Top Ships sourced and managed its fleet. The $2.2 billion in direct orders not only gave the company a technological and economic edge but also positioned it as one of the most forward-thinking operators in the tanker sector.
This long-term relationship demonstrates that strategic consistency, timing, and operational intimacy with industrial partners can yield compounding value in capital-intensive sectors like shipping.