South Korean shipping major HMM is significantly expanding its non-container fleet with a fresh $1.1bn newbuilding order covering eight bulk carriers and two gas carriers, according to Splash247. The move underscores HMM's strategic pivot beyond its core boxship business under a long-term diversification plan.
The company disclosed a KRW1.7trn investment in an exchange filing, though it did not specify the shipyards or detailed vessel specifications in the English version of the statement, Splash247 reported.
Fleet Expansion Details
HMM's latest order comes amid a string of recent newbuilding moves. The company has been building up its non-container exposure under a 2030 growth plan that allocates KRW5.6trn to bulk shipping. Under that plan, HMM aims to grow its dry bulk fleet from 36 ships to 110 vessels, equivalent to about 12.56 million deadweight tonnes (dwt), while developing a more balanced portfolio across dry bulk and tanker markets, according to Splash247.
Previous Orders
Earlier this year, HMM was linked to 10 feeder containerships at HD Hyundai Heavy Industries in a deal worth about $550m. These were reported as conventionally fuelled 2,800 TEU ships for delivery through 2028. The liner also has a series of 1,800 TEU and 3,000 TEU newbuildings on order at Huanghai Shipbuilding.
Last month, HMM was linked to four VLCC (Very Large Crude Carrier) newbuildings at Hengli Heavy Industry in China. The 306,000 dwt crude carriers were priced at around $125m each, according to the report.
| Order type | Number of vessels | Vessel specs | Yard | Estimated value |
|---|---|---|---|---|
| Bulk & gas carriers | 8 bulk + 2 gas | Not disclosed | Not disclosed | $1.1bn (KRW1.7trn) |
| Feeder containerships | 10 | 2,800 TEU conventionally fuelled | HD Hyundai Heavy Industries | $550m |
| Feeders (on order) | Series | 1,800 TEU & 3,000 TEU | Huanghai Shipbuilding | Not disclosed |
| VLCCs | 4 | 306,000 dwt | Hengli Heavy Industry | $125m each |
Operational Implications for Shippers
The expansion adds significant capacity in dry bulk and gas shipping segments, giving shippers more options for moving commodities and liquefied gases. HMM's growing non-container fleet could increase competition and potentially influence freight rates in these markets, though specific rate impacts were not detailed in the source. For logistics operators, the move signals HMM's commitment to providing integrated shipping services across multiple cargo types, which may simplify contracting for multi-commodity shippers.
Watch List
- Delivery timelines for the new bulk and gas carriers (yard and schedule not yet disclosed).
- Further orders under the 2030 plan: HMM still has a gap to fill between its current 36 dry bulk vessels and the target of 110.
- Potential impact on dry bulk and gas freight rates as new tonnage enters the market.
- Additional diversification moves into tanker or other segments, following the recent VLCC orders.
Sources:
