HMM has secured long-term charter cover for two gas carrier newbuilds, signing bareboat charter contracts with a shipping unit of Swiss commodities trader Mercuria, according to Splash247. The deals lock in seven-year commitments starting July 2029 and are part of HMM's broader diversification strategy to grow its non-container shipping portfolio.
The Seoul-listed shipping major said the two vessels are valued at KRW311.8bn ($202m). The contracts run for seven years and come with options for Mercuria to extend each deal by one to three years. Splash247 reported that the two 90,000 cu m gas carriers are included in HMM's recently disclosed 10-ship newbuilding programme.
Charter and Vessel Details
The bareboat charter contracts were signed with a shipping unit of Mercuria, a major Swiss commodity trader. The charters are scheduled to start in July 2029. HMM did not disclose the shipyards or detailed vessel specifications in the English version of its filing, but market sources have linked the gas carrier pair to HD Hyundai Heavy Industries, according to Splash247.
| Contract Term | Duration | Options | Start Date |
|---|---|---|---|
| Bareboat charter | 7 years | 1-3 year extension per vessel | July 2029 |
Strategic Context
HMM last week revealed a KRW1.7trn investment covering eight bulk carriers and two gas carriers as it continues to expand beyond its core container business, Splash247 reported. The company has been building up its non-container exposure under a 2030 growth plan that includes KRW5.6trn of investment in bulk shipping. HMM aims to grow its dry bulk fleet from 36 ships to 110 vessels while developing a more balanced portfolio across dry bulk and tanker markets.
Implications for Shippers and Operators
For logistics managers tracking gas carrier capacity and rates, this deal secures two large (90,000 cu m) gas carriers on long-term charter to a major commodity player, effectively removing them from the spot market for at least seven years. This may tighten availability for other charterers on similar routes. The vessels are scheduled to begin service in July 2029, which aligns with typical newbuilding delivery timelines. Operators should note HMM's accelerating expansion into bulk shipping, potentially reshaping competitive dynamics in the gas carrier and dry bulk segments.
Watch List
- Future charter rates for medium-sized gas carriers as new capacity enters the market.
- HMM's ongoing newbuilding programme and potential additional vessel orders.
- Mercuria's shipping unit's further chartering activity and fleet growth.
- Construction timelines at HD Hyundai Heavy Industries or other yards for these vessels.
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