HMM confirms orders for 20 containerships

As reported in Lloyd’s List last week, the South Korean carrier will also order eight 14,000 teu vessels.

The ultra large containerships will be deployed on the Asia-Europe trade, while the 14,000 teu units will be utilised on the transpacific and US east coast trades.

“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 to shipbuilding companies on April 10,” HMM said in a statement.

Discussions would be held with prospective yards over options for low-sulphur propulsion units, with either scrubbers or LNG bunkering both being considered, HMM added.

“If the shipbuilding process proceeds smoothly followed by the selection of the shipbuilder, signing of a letter of intent and finalising its contract, all the new vessels will be sequentially delivered in the right time to prepare for the 2020 environmental regulations,” HMM said.

The order confirmation follows a shipping and shipbuilding restructuring plan announced by the government in Seoul. The plan includes orders of 200 newbuildings, including 60 boxships, by 2020 to be backed by state financial resources.

As part of the redevelopment plan, the order is set to go to one of the three major South Korean yard, Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries.

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

HMM was the only major carrier to not make a profit in 2017, reporting a $1.1bn loss despite rising volumes, as rival carriers began to benefit from the recovery in container shipping.

Source: Lloyd’s List