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HMM to order eco-friendly mega containerships

[ April 10, 2018   //   ]

After Korean government’s ‘5 Year Plan for Rebuilding Korean Shipping’ announcement, Korean national flagship carrier HMM is getting into its stride to gain global competitiveness through ordering eco-friendly & highly efficient mega containerships.

First, HMM plans to order of total 20 mega-vessels; 12 above 20,000 TEU and eight 14,000 TEU vessels which are considered to deploy in the Asia-North Europe and US East coast trades respectively.  Considering the factors including the recent increase in new shipbuilding price and dock availability, HMM will start on selection of shipyards by sending out its Request for Proposal (RFP) to shipbuilding companies on April 10.

The International Maritime Organization (IMO) is moving forward with a marked reduction in the maximum sulfur content bunker fuel oil from 3.5% to 0.5% on Jan. 1, 2020. To comply with the new environmental regulations, HMM will opt for scrubber installation or LNG bunkering for all the newbuilding vessels after thorough discussions with the finally selected shipbuilder.

If the shipbuilding process proceeds smoothly followed by the selection of the shipbuilder, signing of a Letter of Intent (LOI) and finalizing its contract, all the new vessels will be sequentially delivered in the right time to prepare for the 2020 environmental regulations.

Through this new shipbuilding, HMM will be able to secure stronger fleet competitiveness with the benefit of economies of scale. Furthermore, it will help HMM to form a stable basis for making profits in the intensely competitive market.

Along with the fleet expansion, HMM is going to set a new mid-long term plan to enhance its global competitiveness to promote business normalization & shareholder value, and to create added value between shipping and logistics for mutual growth. To do so, HMM will boost its organizational capability, develop IT technology adopted in shipping, and expand global networks.

HMM has been making its concerted efforts in all sectors, since its restructuring plan was implemented in the second half of 2013. HMM has focused on securing financial liquidity through KRW 4 billion restructuring plan including sales of controlling stake in affiliates and other property.

HMM official said that “Through the acquisition of the most technologically advanced mega containerships, we can strengthen cost competitiveness and react rapidly to the international environmental regulations.” And that “HMM will do its best to become a global top carrier to meet expectations of related organizations and shareholders.”

Lawrence Burns, Senior Vice President of Trades at HMM, states “Today’s announcement begins a new era for HMM. In the very near future HMM can be leading the industry with eco friendly technology advanced ships and systems. Now is a good time for customers and service providers to be partnering with HMM.”

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