HMM plans to double capacity by 2022

The CEO of the Korean ocean carrier cited plans build up its fleet of mega containerships and double vessel capacity by 2022 in a New Year statement to HMM employees.    Hyundai Merchant Marine (HMM) CEO Yoo Chang-Keun told his employees in a New Year statement that he plans to double the carrier’s vessel capacity by launching mega containerships by 2022.
   Chang-Keun said HMM “achieved the 4 million-TEU milestone in annual lifting in 2017 from 3 million TEUs in 2016,” partially through acquiring operational rights of several terminals at key hub connecting East and West.
   “I am convinced that these achievements have laid a solid foundation for our long-term plan where we continue to consider ways of doubling our vessel capacity by 2022 including the launching of mega containerships as we deem the environmental regulations in 2020 as a golden opportunity for our resurgence,” said Chang-Keun.
   Industry experts have predicted protectionism and instability, said Chang-Keun, and in order to meet capacity goals, he issued several directives, including the launch of competitive products in the east-west trade lanes with expanded coverage in Asia via the K2 cooperation; optimized vessel and terminal utilization; cost reduction in capacity handling; and IT advances fuel consumption and in the building of mega containerships.
   The K2 consortium was formed earlier in 2017 with two smaller South Korean carriers – Heung-A Shipping and Sinokor Merchant Marine – for moving cargo within Asia. Also in 2017, HMM ordered two 11,000-TEU vessels and announced plans to issue rights to raise $620 million in October to add ships to its fleet and buy stakes in shipping terminals in North America and elsewhere.
   HMM is the latest of several carriers to announce plans for increased capacity and mega containerships. Maersk Line, CMA CGM, MSC and MOL have already put vessels of 22,000+ TEUs into service, as other carriers scramble to keep up.