According to Trade Winds, to promote business growth and fleet diversification, South Korean shipping giant HMM is planning to invest over $2.5 billion to order a batch of new Panamax container ships and feeder container ships.

Two South Korean shipyards have secured an order for 12 large container ships

HMM is focusing on two domestic shipyards, planning to order up to 12 large LNG dual-fuel container ships.

Several people in the shipbuilding industry said that HMM plans to order a batch of 13,000-14,000 TEU container ships from HD Hyundai Heavy Industries and Hanwha Ocean. At the same time, the company also plans to place a series of new feeder container ship orders, which will be built by Chinese shipyards.

It is reported that HD Hyundai Heavy Industries will receive most of the orders for this new shipbuilding project, responsible for building 8 vessels; the remaining 4 vessels will be handled by Hanwha Ocean.

In August this year, there were reports that HMM planned to order 6 confirmed new ships, plus 6 optional vessel orders. The price of these new container ships has not yet been announced, but shipbuilding industry insiders speculate that, considering additional technical specifications, the procurement cost per vessel for HMM will be between $180 million and $185 million. In addition, the company also hopes to secure an earlier ship delivery schedule.

Two types of feeder ships may be awarded to Chinese shipyards

As for feeder container ships, informed sources revealed that HMM plans to order two different sizes of ships: 1800 TEU and 2700 TEU. A shipbroker said, "These feeder container ships will adopt a Panamax ship width design and use conventional ship fuel as power."

Specifically, regarding the 2700 TEU feeder ships, HMM plans to order 4 confirmed new ships, with an additional 3 optional orders; for the 1800 TEU feeder ships, the company plans to order 3 confirmed vessels, with an additional 2 optional orders.

According to sources, currently three Chinese shipyards are competing for HMM's feeder ship orders. Shipbuilding industry insiders estimate that the price per 2700 TEU vessel is approximately $45 million, while the price per 1800 TEU vessel ranges between $30 million and $33 million.

Accelerating fleet expansion and diversification

A spokesperson for HMM stated that specific decisions related to the orders have not been finalized yet, and the decision to order new ships requires "considering various factors." The spokesperson added, "To solidify a stable growth foundation and achieve fleet portfolio diversification, HMM is simultaneously advancing projects related to large container ships and feeder container ships."

In April this year, Jay Y Lee, Executive Vice President and Head of Container Business at HMM, stated that the company would order "various sizes" of container ships to meet customer demand.

Currently, HMM's plan to acquire SK Shipping's vessels has failed, but the company is still pushing forward with fleet expansion.

This South Korean shipowner plans to invest $13.5 billion by 2030 to strengthen its container ship business, with funds used for new ship construction, upgrading existing terminals, and additional container purchases.

Currently, HMM has four 8600 TEU methanol-fueled container ships under construction at HD Hyundai Samho, with one scheduled for delivery this year and the remaining three next year.

HMM is a member of the "Premier Alliance," whose partners also include Yang Ming Marine Transportation and Ocean Network Express (ONE).

Original: https://www.toutiao.com/article/7559408412551922212/

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