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HMM confirms orders for up to 10 VLCCs and two boxships

HMM confirms orders for up to 10 VLCCs and two boxships

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A year to the day since compatriot Hanjin Shipping went at its expense, South Korea’s Hyundai Merchant Marine (HMM) announced late on Thursday long telegraphed orders for boxships and VLCCs.

Now the Korean flag carrier in the wake of Hanjin’s demise, HMM is tapping state funds via Seoul’s newly created maritime financing vehicle, Korea Shipping & Offshore, to come in for two 11,000 teu resales as well as five VLCCs with options for five more supertankers.

The boxships are under construction at Hanjin Heavy Industries & Construction’s Subic Shipyard in the Philippines and at $81m each are, according to HMM, priced 10% lower than current market prices. The ships will deliver in May next year and will be deployed on services from Asia to the east coast of South America.

Meanwhile, the Korean shipping line has finalised its investment plans for five firm and five option VLCCs at compatriot Daewoo Shipbuilding & Marine Engineering (DSME). The five firm tankers are priced at KRW470bn ($418m) and will deliver from early 2019 onwards.

An HMM official commented on the tanker orders: “This year is the right time to order new VLCCs at historically lowest prices since 2003.”

HMM managed to squeak through dramatic restructuring last year and has since set about planning a significant fleet expansion as well as major investments in terminals around the world.

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Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Paul Richardson
    September 1, 2017 at 9:12 am

    Good day Sam
    Those HMM boxships are already being built at Subic for Seaspan, but now HMM has token them over – hence the delivery is in May next year
    Just cant understand why it’s taken so long since the Hanjin bankruptcy, to find a perspective buyer for the vessels

    Best regards
    Paul