HMM in for up to 10 DSME VLCCs

HMM in for up to 10 DSME VLCCs

Hyundai Merchant Marine (HMM) has signed a letter of intent with Daewoo Shipbuilding & Marine Engineering (DSME) to build five 300,000 dwt VLCCs with an option of five more vessels.

Chang-keun Yoo, CEO of HMM stated “We currently operate 12 VLCCs which have been foundational to stable profits and enhancing sales competitiveness. We thought this year is the right time to order new VLCCs at historically low newbuilding prices.”

A final agreement with DSME will be concluded by the end of July.

HMM is taking advantage of the $2.28bn funds the Korean government made available last October to local owners to order at local yards.

The VLCCs are HMM’s first new orders since completing its restructuring last year. Up next for the line will likely be a series of small to medium sized boxships.

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. Avatar
    Paul Ellis
    April 10, 2017 at 9:27 am

    Government subsidies in all but name?