HMM to Spend 2.2 Trillion Won on 12 Container Ships, Boosting Fleet Competitiveness

[Financial News] HMM will invest at least 2 trillion won to secure 12 container ships. The move is seen as an effort to strengthen fleet competitiveness and improve route network efficiency by expanding both medium- and large-sized container ships and small- and medium-sized feeder ships.
HMM disclosed that at a board meeting on the 15th, it decided to invest 2,167,797,620,000 won in ordering newbuild container ships and purchasing resale newbuild vessels. The amount represents 8.16% of its equity, and the investment period runs through December 31, 2029. Specifically, HMM will place newbuild orders for eight 13,000-TEU-class container ships and acquire three 2,800-TEU-class vessels and one 1,700-TEU-class vessel through resale transactions. The additional capacity will total 114,100 TEU.
As notable as the newbuild orders for large ships is the resale of small- and medium-sized container ships. Resale is a transaction in which a newbuild vessel ordered by another shipowner—whether under construction or nearing delivery—is transferred to a new owner. One advantage is that ships can be secured relatively quickly compared with placing new orders, allowing the fleet to be expanded faster. The reason for securing them quickly is to deploy them directly as feeder ships. Vessels in the 1,700–2,800-TEU range can serve as feeder ships, connecting major ports of call for large container ships with nearby small- and medium-sized ports to collect and distribute cargo.
HMM said the purpose of the investment was “to secure fleet competitiveness through investment in container ships.” It is seen as a step toward strengthening the execution of HMM’s Hub & Spoke network strategy. Under this model, large vessels handle trunk routes between major hub ports, while small- and medium-sized feeder ships connect surrounding ports to the hubs. The goal is to increase the load factor of large vessels while building a dense route network linking diverse regions.
HMM previously outlined a mid- to long-term strategy to expand its container fleet to 166 ships by 2030. The plan is to move away from a fleet centered on ultra-large vessels and bolster it with small- and medium-sized ships as well, broadening operational efficiency and service coverage.
HMM is also seeking another term for its President and CEO, Choi Won-hyuk. The company disclosed that it will hold an extraordinary shareholders’ meeting on the 25th of next month in Busanjin-gu, Busan, and put forward a proposal to reappoint Choi as an inside director. Choi took office in March last year, and his term was due to expire next March. If the reappointment proposal passes, he will remain CEO until HMM’s regular shareholders’ meeting in March 2028.
[email protected] Jeong Won-il Reporter