South Korea's largest container line, Hyundai Merchant Marine (HMM), is putting the brakes on new container ship orders, a move that signals caution about oversupply in the global liner market. The world's eighth-largest carrier by capacity said it will pause finalizing newbuild orders for at least ten additional 13,000-TEU liquefied natural gas (LNG) dual-fuel container ships that were planned for the second half of 2026, according to FreightWaves.
Instead, HMM is tilting toward energy transportation, focusing on Suezmax tankers, medium-range (MR) petroleum tankers, very large gas carriers (VLGCs), and LNG carriers. The company, which has a fleet of around 70–97 vessels with capacity of 1.01–1.03 million TEU, is the only Korean liner in the global top 10 by capacity. It operates ultra-large 24,000-TEU ships (including two of the largest currently operating) plus smaller feeders on major east–west Asia–Europe and Asia–North America trades.
The shift in strategy reflects mounting market uncertainties. In its Q1 2026 earnings release, HMM warned that "global market uncertainties are expected to grow due to increased vessel capacity from newbuild deliveries, rising costs associated with the Middle East crisis, and U.S. tariff policies," as reported by FreightWaves. The carrier's pause comes after recent orders and deals including more than $1 billion for eight new bulk and two gas carriers with deliveries through 2031, and a resale contract for four very large container carriers (VLCCs) with delivery in 2029. Including earlier orders, HMM will have six new VLCCs on order, bringing its VLCC fleet to 20 vessels once delivered. It also has a joint venture with energy trader BGN to operate two new 88,000 m³ VLGCs.
Financial Performance and Outlook
HMM reported revenue of $7.5–$7.7 billion in 2025, down about 7%–9.5% year-over-year from 2024's $8.5 billion, but far ahead of Korean peers Pan Ocean, Sinokor, SM Line, and KMTC, according to FreightWaves. For Q2 2026, Shinhan Investment & Securities forecast revenue of $2.21 billion, ahead 25% year-over-year, and operating profit of $291.8 million, up 80.4% year-over-year, as reported by AJP News Agency. This is above the market consensus operating profit estimate of $240 million. Shinhan's full-year 2026 outlook, revised upward, is for revenue of $8.9 billion (up 17.6% y/y) and operating profit of $1.2 billion (up 19.8% y/y). The new operating profit forecast is 75.9% higher than Shinhan's prior estimate, according to AJP.
| Metric | 2025 Actual | Q2 2026 Forecast (Shinhan) | Full-Year 2026 Forecast (Shinhan) |
|---|---|---|---|
| Revenue | $7.5–$7.7B | $2.21B | $8.9B |
| Operating profit | N/A | $291.8M | $1.2B |
| Revenue growth (y/y) | -7% to -9.5% | +25% | +17.6% |
| Operating profit growth (y/y) | N/A | +80.4% | +19.8% |
Despite the improved numbers, Shinhan kept a Neutral rating and did not give a target price, according to AJP. HMM reports second-quarter results in August.
Network Changes and New Routes
East-west network enhancements announced in late 2025 covering Asia-Europe, Asia-North America, and Asia-Middle East use extra capacity from newbuilds delivered in 2025–2026, FreightWaves reported. HMM said it will launch new routes to Africa using a hub-and-spoke model and pursue new demand in Southeast Asia.
Implications for Shippers and Operators
The pause in new container orders by a top-10 carrier suggests a more cautious approach to capacity expansion, which could help balance supply and demand on key east-west lanes. For shippers, reduced newbuild intake may support freight rates over the medium term, particularly if demand holds steady. Freight forwarders and logistics managers should monitor HMM's Q2 results and any further shifts in ordering behavior, as well as the carrier's new Africa routes, which may offer alternative routing options.
Watch List
- HMM Q2 results in August 2026 – Actual earnings vs. Shinhan and market consensus.
- Further newbuild cancellations or deferrals by other carriers, which could indicate a broader industry trend.
- Trade policy developments (U.S. tariffs) and their impact on container demand.
- Middle East crisis and its effect on operating costs and routing via Suez.
- New Africa and Southeast Asia service launches by HMM, potentially shifting trade patterns.
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