In response to the ongoing challenges in the container shipping segment, Hyundai Merchant Marine (HMM) is strategically diversifying its portfolio, turning its attention to the flourishing car carrier market, says an article published on a container news website.
Car Carrier Expansion
- Order Details: HMM, in collaboration with Seaspan Corporation, has booked 10,800-unit pure car and truck carriers (PCTCs) for long-term charter to Hyundai Motor’s shipping arm, Hyundai Glovis.
- LNG Dual-Fuelled: Notably, these PCTCs will be LNG dual-fuelled, representing an eco-friendly approach and the largest vessels of their kind. They are designed to transport electric vehicles.
- Shipbuilders: China State Shipbuilding Corporation’s subsidiaries, Guangzhou Shipyard International (GSI) and Shanghai Waigaoqiao Shipbuilding (SWS), secured the PCTC orders from HMM and Seaspan, respectively.
Previous Commitments And Future Plans
- Earlier Orders: In March, HMM had already ordered three 8,600-unit PCTCs at GSI for charter to Glovis. Additionally, sources suggest HMM had ordered another four PCTCs before the recent commission at GSI.
- Business Growth Strategy: HMM’s move aligns with its business growth strategy outlined in July the previous year, involving diversification, including bulk business expansion.
Strategic Outlook
- Market Monitoring: HMM emphasizes a vigilant approach to the PCTC markets, indicating a commitment to adaptability. The company remains open to diverse business opportunities.
- Past Experience: HMM had previously operated in the PCTC business over a decade ago but withdrew due to restructuring. This re-entry signifies a proactive response to industry dynamics.
HMM’s foray into the car carrier segment showcases a proactive adaptation to market conditions and underscores the company’s commitment to a diversified and resilient business strategy.
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Source: Container news
