HMM's Fleet Expansion Investment Tops 6 Trillion Won This Year With New 2.1 Trillion Won Deal

HMM is investing 2.1 trillion won to expand its fleet by 12 vessels, pushing its total investment this year past 6 trillion won. HMM is accelerating its fleet expansion with a 2.1 trillion won investment to secure 12 additional container vessels, including eight large eco-friendly ships. The decision pushes HMM's cumulative investment this year past 6 trillion won, or approximately $4.52 billion, bringing its total investment since President Choi Won-hyeok took office in March 2025 to approximately 12 trillion won. HMM signed a shipbuilding contract with HD Hyundai on Oct. 20 for eight 13,000-TEU container vessels. All eight will be built as low-carbon ships equipped with LNG dual-fuel propulsion systems. Six will be constructed by HD Hyundai Samho and two by HD Hyundai Heavy Industries, with deliveries scheduled to begin in 2029. LNG fuel can reduce greenhouse gas emissions by more than 23% compared with conventional marine fuel oil, playing an important role in meeting environmental regulations set by the International Maritime Organization (IMO). In addition to large vessels, HMM is securing feeder vessels to strengthen its regional shipping network. The company plans to acquire four feeder vessels — three with a capacity of 2,800 TEU and one with a capacity of 1,700 TEU — through resale transactions, which involve taking over contracts for vessels already under construction. This approach allows HMM to expand its fleet more quickly than placing new shipbuilding orders. The eight 13,000-TEU vessels will be deployed on the Far East-India-Mediterranean (FIM) route to improve the efficiency of its long-haul shipping operations. The feeder vessels will strengthen the company's hub-and-spoke network connecting major hub ports and support the expansion of regional shipping services in high-growth markets, including Africa and India. The investment forms part of HMM's "2030 Mid- to Long-Term Strategy," under which the company plans to invest a total of 29 trillion won to secure 166 container vessels and 110 bulk carriers by 2030. HMM's feeder fleet has already expanded 3.5-fold, from 12 vessels in March 2025 to 42 this year. Its bulk shipping fleet has also grown from 44 to 60 vessels over the same period, with the company diversifying beyond its traditional dry bulk operations into gas carriers and car carriers. HMM said it made the investment proactively, taking into account the two- to three-year shipbuilding lead time and the cyclical nature of the shipping industry. Beyond vessel acquisitions, the company plans to continue investing in logistics infrastructure, including crane replacements at its Tacoma terminal in the United States and digital transformation initiatives, to strengthen its global competitiveness. Signs of an earnings rebound amid improving shipping market conditions are also becoming evident. Securities firms expect HMM's third-quarter operating profit to reach 1.0772 trillion won, tripling from the previous quarter and exceeding market expectations. The outlook reflects stronger container freight rates driven by increased cargo volumes bound for the Americas and worsening congestion at Chinese ports. However, structural oversupply risks and uncertainty surrounding the company's largest shareholder remain key challenges. An HMM representative said, "Investment in the shipping industry requires a long-term, forward-looking approach. We plan to continue our mid- to long-term investments to build the capabilities needed to compete with global shipping companies." Meanwhile, HMM plans to hold an extraordinary general meeting of shareholders on Nov. 25 to vote on the reappointment of President Choi Won-hyok as an inside director.