In an age of shipping where efficiency and sustainability are not choices, South Korea’s HMM is once again taking the lead. The company’s new investment, however, is not just expansion, but an open statement of intent to construct the next generation of cleaner, more sustainable sea shipping.
A $2.8 Billion Bet on the Future
South Korea’s flagship carrier, HMM, is making headlines once again, this time with a significant new investment of $2.8 billion. On October 16th, the company said it has ordered a dozen next-generation ships under new building contracts, solidifying its long-term strategy for a greener, smarter, and more resilient fleet. The order forms part of HMM’s overall $7.7 billion investment plan under which it is building up its environmentally friendly capacity and preparing for the future in the rapidly evolving shipping landscape.
A Dozen Dual-Fuel Giants Ahead
The order comprises twelve 13,000 TEU-sized container ships that are fitted with dual-fuel LNG technology. According to Korean media reports, eight of the vessels will be built by HD Hyundai Heavy Industries while Hanwha Ocean will build four. The delivery will happen in 2027 and 2028, which is another step in the decarbonization strategy of HMM.
These ships will be part of HMM’s growing fleet of green ships, a push that has been incessantly in process since 2018. On the road towards 1.5 Million TEUs, in September 2024, HMM released a modified midterm plan with a target to have a total capacity of around 1.5 million TEUs in 130 ships. That’s a significant hike from its earlier goal of surpassing 1 million TEUs, a figure it is already nearing closely. According to Alphaliner figures, HMM currently has 93 vessels with combined capacity of 997,170 TEUs, placing it among the world’s top carriers.
Expanding Beyond Containers
HMM’s ambitions go beyond container shipping. The company has been consolidating its bulk and energy shipping business, following a failed bid to acquire SK Shipping. It has since acquired additional dry bulk vessels and recently signed a long-term contract with Brazil’s Vale to haul iron ore, a clear sign of its intention to diversify its portfolio. The company’s recent launch also includes two new Very Large Crude Carriers (VLCCs), although more details are kept under wraps. HMM currently has 14 VLCCs, seven product tankers, and two LNG carriers in its rolls, underscoring its robust presence in the energy shipping sector.
More Deliveries Ahead
The expansion doesn’t stop there. Four multi-purpose carriers will be delivered by HMM over this year and the next, providing the fleet with a greater degree of flexibility. Seven car carriers will also soon join the fleet. These vessels are to be chartered to Hyundai Glovis for its worldwide car shipping business.
As controversy around ownership continues, HMM’s business plan is on course. With billions spent on new, low-carbon ships and a multi-fleet approach, the business is charting a course to long-term resilience and supremacy on world oceans. If recent orders are anything to go by, HMM is not just expanding, it’s defining the future of sustainable ocean shipping.
