South Korean Hyundai Merchant Marine (HMM) plans to double its size fleet by 2022, as part of a long-term development plan, as announced by President & CEO C.K. Yoo in his New Year message.
The plan is fully aligned with the company’s recently announced ambition to create a 22,000 TEU shipbuilding plan.
In particular, Mr. Yoo noted that 2018 is expected as another year of uncertainty, with unstable oil prices and regional oversupply of tonnage as negative challenges for the shipping industry.
“Under these circumstances, while we deal with such a fluid environment with flexibility and agility, we ought to persistently pursue growth and profitability,” he said.
In order to achieve a further cost reduction, the company should also keep pursuing a scale merit effect based on increased handling volume this year, he stressed.
In the container sector, he suggested, they should offer s variety of differentiated products and an expanded service coverage, to boost market competitiveness.
Moreover, he continued, in the wet bulk sector, HMM needs to make the most of the new order for five VLCC vessels, to enhance business partnerships. The company ordered in 2017 five very large crude carriers (VLCCs) from DSME.
“Also, the dry bulk sector should revamp the tonnages to be more competitive as the old chartered tonnages are being returned to owners.”
As for the maritime technology sector, there should be improvement in operational efficiency of ships, with a focus on new technologies that could be “a game changer” for the industry.
Commenting on the goals accomplished through 2017, Mr. Yoo said: “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.”
