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HMM to order eco-friendly mega containerships

 12 of above 20,000 TEU & 8 of 14,000 TEU mega containerships will be ordered
– Embarks on the ‘Capacity of 1 Million TEU’ strategy.

[Seoul, Korea, April 10, 2018] HMM embarks on ordering new eco-friendly mega containerships.

After Korean government’s ‘5 Year Plan for Rebuilding Korean Shipping’ announcement, HMM –

as Korea’s national flagship carrier-is now getting into its stride to gain global competitiveness through

ordering eco-friendly & highly efficient mega containerships.

 

First, HMM plans to order of total twenty mega-vessels; twelve above 20,000 TEU and eight

14,000 TEU vessels which are considered to deploy in the Asia-North Europe and US East coast

trades respectively.

 

Considering the factors including the recent increase in new shipbuilding price and dock availability,

HMM will start on selection of shipyards by sending out its Request for Proposal (RFP) to shipbuilding

companies on April 10.

 

The International Maritime Organization (IMO) is moving forward with a marked reduction in the

maximum sulfur content bunker fuel oil from 3.5% to 0.5% on January 1, 2020. To comply with the

new environmental regulations, HMM will opt for scrubber installation or LNG bunkering for all the

newbuilding vessels after thorough discussions with the finally selected shipbuilder.

 

If the shipbuilding process proceeds smoothly followed by the selection of the shipbuilder, signing of

a Letter of Intent (LOI) and finalizing its contract, all the new vessels will be sequentially delivered in

the right time to prepare for the 2020 environmental regulations.

 

Through this new shipbuilding, HMM will be able to secure stronger fleet competitiveness with the

benefit of economies of scale. Furthermore, it will help HMM to form a stable basis for making profits

in the intensely competitive market.

 

Along with the fleet expansion, HMM is going to set a new mid-long term plan to enhance its global

competitiveness to promote business normalization & shareholder value, and to create added value

between shipping and logistics for mutual growth. To do so, HMM will boost its organizational capability,

develop IT technology adopted in shipping, and expand global networks.

 

HMM has been making its concerted efforts in all sectors, since its restructuring plan was implemented

in the second half of 2013. HMM has focused on securing financial liquidity through KRW 4 billion

restructuring plan including sales of controlling stake in affiliates and other property.

 

HMM official said that “Through the acquisition of the most technologically advanced mega containerships,

we can strengthen cost competitiveness and react rapidly to the international environmental regulations.”

And that “HMM will do its best to become a global top carrier to meet expectations of related

organizations and shareholders.”

Source: HMM
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