HMM to invest 2.1 trillion won to secure 12 container ships; investment this year tops 6 trillion won

[Financial News] HMM will invest approximately 2.1 trillion won to secure 12 container ships. Including this investment, HMM’s total investment this year has exceeded 6 trillion won. The strategy is to strengthen its maritime transport network by securing both large and smaller vessels and connecting deep-sea routes with regional feeder networks.
HMM said on the 20th that it had signed a contract with HD Hyundai to build eight 13,000-TEU liquefied natural gas (LNG) dual-fuel container ships. TEU is a unit representing one 20-foot container.
Six ships will be built by HD Hyundai Samho Co., Ltd. and two by HD Hyundai Heavy Industries, respectively, with deliveries scheduled to begin in 2029. HMM plans to deploy the ships on its FIM route, which connects the Far East, India and the Mediterranean, to improve operational efficiency on key deep-sea routes.
In addition, HMM will secure four feeder vessels through resale deals: three 2,800-TEU container ships and one 1,700-TEU ship. Resale is a transaction in which a buyer takes over the contract for a vessel under construction, allowing ships to be secured more quickly than through new orders. Feeder vessels are smaller ships that connect hub ports with ports in surrounding areas. HMM plans to boost the competitiveness of its transport network through a “hub-and-spoke” strategy in which large vessels connect major hub ports while feeder vessels carry regional cargo.
The investment is part of a mid- to long-term strategy to invest a total of 29 trillion won by 2030. HMM plans to expand its container fleet to 166 vessels, with capacity of 1.47 million TEU, and its bulk fleet to 110 vessels, with capacity of 13.52 million DWT. According to HMM, the amount earmarked this year for fleet expansion, logistics infrastructure and future technologies, including this vessel investment, has exceeded 6 trillion won. The company said it is continuing to invest in anticipation of future demand, taking into account vessel construction periods that typically take two to three years or longer and fluctuations in shipping market conditions.
In its container business, HMM is stepping up efforts to secure feeder vessels alongside large ships. Its feeder fleet, including vessels in operation and on order, has grown 3.5-fold, from 12 in March last year to 42 this year. These ships are being deployed to build feeder networks in regions with strong growth potential, including Africa and India.
In its bulk business, HMM is expanding its fleet based on long-term contracts and diversifying its vessel types. The bulk fleet has grown from 44 vessels in March last year to 60 this year, and is expanding beyond its traditional focus on dry-bulk ships and tankers to include gas carriers, car carriers and multipurpose vessels. In addition to ships, the company is investing in global logistics hubs and digital transformation, including replacing cranes with the latest models at the U.S. Tacoma terminal (WUT).
An HMM official said, “Investments in the shipping industry, including ships and ports, are characterized by a long-term outlook and take place over several years,” adding, “We plan to continue pursuing mid- to long-term investments to build the capabilities needed to compete with global shipping companies.”

[email protected] Jeong Won-il Reporter