HMM to Order 20 Eco-Friendly Mega-Ships

South Korea-based liner Hyundai Merchant Marine (HMM) has announced it is to buy 20 mega-ships, twelve of which are above 20,000 TEU and 8 that are 14,000 TEU.

The Korean government recently announced a ‘5 Year Plan for Rebuilding Korean Shipping’, and with HMM as Korea’s national flagship carrier, Korea is backing up its initiative.

The vessels will be deployed along the Asia-North Europe and US East coast trades, respectively.

Considering the factors including the recent increase in new shipbuilding price and dock availability, HMM will start on selection of shipyards by sending out its Request for Proposal (RFP) to shipbuilding companies on April 10.

The International Maritime Organization (IMO) is moving forward with a marked reduction in the maximum sulphur content bunker fuel oil from 3.5% to 0.5% on January 1, 2020.

To comply with the new environmental regulations, HMM will opt for scrubber installation or LNG bunkering for all the new-building vessels after thorough discussions with the finally selected shipbuilder.

If the shipbuilding process proceeds smoothly followed by the selection of the shipbuilder, signing of a Letter of Intent (LOI) and finalizing its contract, all the new vessels will be sequentially delivered in the ‘right time’ to prepare for the 2020 environmental regulations.

Through this new shipbuilding, HMM will be able to secure stronger fleet competitiveness with the benefit of economies of scale.

Furthermore, it will help HMM to form a stable basis for making profits in the intensely competitive contemporary liner market.

An HMM official said in a press release: “Through the acquisition of the most technologically advanced mega containerships we can strengthen cost competitiveness and react rapidly to the international environmental regulations.

‘HMM will do its best to become a global top carrier to meet expectations of related organizations and shareholders.”