HMM has taken its first steps to expand its dry cargo fleet under an ambitious plan following its failed privatisation.
TradeWinds reported in April that the South Korean liner giant was looking to swell its non-container fleet from 36 to 110 vessels by the end of the decade.
The company is already acting on its ambition.
It has struck for seven, mainly modern, secondhand bulkers of all sizes, according to shipbroking sources. One of these transactions has been confirmed.
If the other six deals materialise as well, HMM will have run up a tab exceeding $240m.
In an email to TradeWinds, an executive said HMM “is constantly exploring various opportunities to expand and diversify … [its] fleet portfolio”.
“We are reviewing different secondhand bulkers to meet our operational and strategic needs. However, we are not in a position to disclose any specific contractual details at this stage,” PR team manager Hajeong (Hani) Lee said.
According to information gathered by TradeWinds, HMM made its first acquisition in mid-May, when it pounced on the 63,600-dwt SSI Privilege (built 2019) for $32.4m.
It is set to take delivery in September from Dubai-based Densay Shipping.
In mid-June, brokers tied HMM to the scrubber-fitted 209,200-dwt Hermann Oldendorff (built 2016), a newcastlemax that Oldendorff Carriers reportedly sold for $55m.
The German giant does not discuss commercial transactions but is known to be shaking off existing vessels amid high bulker prices to reinvest in more modern, larger newbuildings.
Moving down the size scale, US brokers reported on 12 July that HMM had agreed to spend $37m on BW Dry Cargo’s 81,700-dwt BW Kobe (built 2019).
All the other ships HMM has reportedly agreed to buy belong to Japanese owners. Last month, it is believed to have spent $35m or $36m on Kambara Kisen’s 81,800-dwt Livia Rose (built 2018).
At about the same time, Nisshin Shipping is said to have sold the 63,500-dwt Western Oslo (built 2019) for between $31.5m and $32m to HMM.
In July, HMM was reported to have expanded its binge to handysizes.
Several brokers report that it acquired the 34,500-dwt Hilma Bulker (built 2017) from Hisafuku Kisen for $23.5m and the 37,600-dwt Bamboo Star (built 2019) from Sugahara Kisen for about $28m.
HMM is considered a state-owned company as its major shareholders are Korea Development Bank and Korea Ocean Business Corp. KDB and KOBC, which control 57.9% of HMM, want to privatise the company.
They were to sell their stakes to a consortium of Harim Group — the country’s largest poultry processor — and JKL Partners for $4.8bn in February. But the deal failed due to “differences over certain issues”.
After the privatisation fell through, HMM announced it would extensively increase its container ship and dry cargo fleet to strengthen its global competitiveness.
Under the plan, its boxship capacity would grow from 84 vessels of 920,000 teu to 130 ships of 1.5m teu by 2030.
Its bulk shipping business, which includes dry cargo, tankers, car carriers and heavylift vessels, is looking to swell its fleet from 36 ships with a carrying capacity of 6.3m dwt to 110 vessels totalling 12.28m dwt.
