- HMM’s acquisition of SK Shipping collapsed due to valuation differences, leaving the carrier to pursue fleet growth through new orders, chartering, and second-hand vessels.
- Under its 2030 mid- to long-term strategy, HMM aims to add 66 bulk carriers totaling 6.22 million DWT, valued at about $3.3 billion.
- The company’s limited reliance on Chinese-built vessels positions Korean shipbuilders as prime candidates for new contracts.
- With global orders for tankers, bulk carriers, and LPG carriers declining sharply, domestic shipyards are looking to HMM for fresh orders.
HMM has reaffirmed its long-term expansion plan following the failure of its bid to take over SK Shipping. Under a 23.5 trillion won strategy stretching to 2030, the company is preparing to place orders for 66 bulk carriers totaling 6.22 million DWT, with an estimated value of $3.3 billion, according to the report published by ChosunBiz.
HMM’s Fleet Expansion Strategy
To advance its 2030 mid- to long-term strategy, HMM had sought to acquire nearly all divisions of SK Shipping, excluding its LNG business, as the carrier is restricted from operating LNG vessels until 2029 under a previous non-compete agreement. SK Shipping’s fleet at the end of last year included 23 oil chemical product carriers, 14 LPG carriers, 10 bulk carriers, and 7 bunkering vessels.
A successful acquisition would have allowed HMM to cover more than 80 percent of its fleet expansion target. However, the deal collapsed due to differences over valuation, prompting HMM to pursue its growth objectives through second-hand vessel purchases, chartering, and newbuilding programs.
Domestic Shipbuilders Anticipate New Orders
Global demand for tankers, bulk carriers, and LPG carriers has slowed sharply this year, creating expectations of fresh contracts for domestic shipyards. Data from Clarkson Research shows that worldwide orders for these vessel types totaled 630,000 compensated gross tonnage (CGT) by July, a 74 percent drop from the same period last year.
The decline outpaces the overall 50 percent reduction in global ship orders, which stood at 2.33 million CGT. HMM is seen as a likely source of new orders for Korean yards, as its reliance on Chinese-built vessels remains very low at just 1.1 percent, compared to more than 25 percent for global peers. Industry observers note that despite an active second-hand bulk carrier market, HMM will ultimately need to increase newbuilding activity to achieve its long-term fleet goals.
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Source: ChosunBiz
