South Korean shipping giant HMM Co. disclosed ambitious plans on Monday to significantly expand its fleet of container and bulk carriers by 2030, aiming to bolster its position in the global shipping market. This announcement comes at a challenging time for the industry, characterized by declining freight rates and economic slowdowns.
Currently, HMM operates a capacity of 92 twenty-foot equivalent units (TEU), with plans to increase this to 150 TEU by 2030. This expansion translates to an equivalent capacity of about 130 container ships, up from 84. For its bulk carriers, HMM aims to nearly double its capacity from the current 6.3 million deadweight tonnage (DWT) to 12.28 million DWT, which would involve increasing its fleet to 110 vessels.
This strategic move follows the collapse of a potential $5 billion sale of HMM to Harim Co., South Korea’s leading poultry processor, earlier this year. Despite holding only a 2.7% share of the global container shipping market, HMM is making a decisive push to strengthen its competitive stance.
The shipping industry globally has faced significant challenges, with the Shanghai Containerized Freight Index reflecting a sharp decline from its peak in 2021 to levels reminiscent of pre-pandemic days. This downturn is attributed to an oversupply of large container ships and lingering economic uncertainties spurred by regional conflicts.
In response to the industry’s push for sustainability, HMM is also accelerating its plans towards zero emissions, aiming to achieve this goal by 2045, five years ahead of schedule. The company plans to enhance energy efficiency, construct eco-friendly vessels, and utilize low-emission fuels.
Further supporting the domestic shipping sector, the Korea Ocean Business Corp will invest in green bonds issued by local shippers and offer favorable loans to those with high environmental, social, and governance ratings, as part of a broader effort to invigorate the industry while adhering to global environmental standards.
