South Korea's biggest shipping line to invest 15t won on expansion

SOUTH KOREA'S biggest shipping company plans to invest 15 trillion won (S$16 billion) by 2026 on new ships and terminals to strengthen its competitiveness and comply with tighter environmental regulations.

HMM will increase its shipping capacity to 1.2 million 20-foot containers by 2026 from 820,000 TEU now and expand its bulk carrier fleet to 55 vessels from 29, the company said in an emailed statement on Thursday (Jul 14). HMM said it will invest in terminals and logistics assets in key markets, without providing more details.

Supply-chain bottlenecks brought on by Covid outbreaks and labour shortages have caused port congestion and bedevilled the global shipping industry over the past 2 years. Companies such as AP Moller-Maersk and Hapag-Lloyd have been ordering new vessels to meet demand and to replace older ships.

The industry is also working to meet stricter environmental rules after the United Nation's International Maritime Organization pledged to reduce carbon emissions by 50 per cent by 2050. HMM said it plans to meet the targets by deploying vessels with the latest technology to emit less.

HMM reported its biggest ever annual operating profit of 7.38 trillion won last year, as port congestion lifted shipping rates to record levels. BLOOMBERG