South Korea’s HMM has ended a near two-decade-long hiatus in ordering MR product tankers.
The shipping giant is said to have booked up to four 50,000-dwt newbuildings at domestic shipyard HD Hyundai Mipo.
Shipbuilding sources said HMM penned the order for two firm MR tanker newbuildings some time ago, with the details only now coming to light.
The company is said to be paying $52m each and is scheduled to take delivery of them in 2027.
One shipbuilding source noted that the “early delivery” dates for HMM’s newbuildings are unusual, as Hyundai Mipo is believed to have ships booked until late 2028.
One newbuilding observer said: “Someone may have not exercised the option ships and Mipo has resold the slots to HMM.”
The tanker order is believed to be part of HMM’s mid to long-term strategy to grow its fleet.
Officials from HMM and Hyundai Mipo were not available for comment due to a public holiday in South Korea.
Market leader
HMM is the largest liner company in South Korea, with a diverse presence across the dry bulk, tanker, gas and car carrier sectors.
In the tanker business, it controls 14 VLCCs and three MRs.
Two of the three product carriers were built in 2008, while the 49,884-dwt Oriental Aquamarine (ex-Petronia Pacific) was constructed in 2020. It bought the tanker from Pacific Carriers last year for $43m.
HMM has mapped out a strategy to expand, allocating KRW 23.5trn ($17.85bn) for investment through to 2030 to transform itself into a global leader in green shipping and logistics.
The company said that under its sustainable growth plan, it will be investing KRW 12.7trn in the container business; KRW 5.6trn in the bulk business that includes dry bulk, tanker, gas and car carriers; KRW 4.2trn in the integrated logistics business; and KRW 1trn on competitiveness enhancement.
It is looking to achieve net-zero carbon emissions by 2045 and will allocate KRW 14.4trn of the total investment to sustainable management initiatives, including low-carbon ships and green facilities.
HMM is gearing up to have a fleet of 110 vessels, up from the current 36.
Balanced strategy
The company said it wants to strengthen its “profitability by constructing a stable portfolio that is not biased to a particular bulk market [tanker/dry]”.
“HMM intends to diversify its business by establishing a presence in the eco-friendly energy transportation sector and gaining a significant market share at an early stage,” it said.
HMM is considered a state-owned company, as its primary shareholders, Korea Development Bank and Korea Ocean Business Corp, are working towards its privatisation.
The company has been active in the shipbuilding and sale-and-purchase markets over the past two years.
On the newbuilding side, it has 12 boxships on order at domestic shipyards, along with six pure car/truck carriers and four 38,000-dwt multipurpose ships under construction at yards in China.
In terms of S&P activity, VesselsValue data shows the company acquired 13 ships in 2024, eight in 2023 and five in 2022.
The secondhand tonnage acquired includes VLCCs, capesize bulkers, small and medium-size bulk carriers, as well as various sizes of container ships.
