The chief executive officer (CEO) of HMM, Kim Kyung-bae pointed out in his New Year’s message that South Korea’s flagship carrier will build eco-friendly ships and acquire more container terminals to secure its future growth.
Addressing the ongoing decline in container freight rates, Kim said, “We must strengthen pre-emptive crisis management. It is said that there’s no sky without rain. Companies cannot always have clear skies. However, the current crisis is due to external factors that have not been seen for decades, as seen in the sharp fluctuations in the Shanghai Containerized Freight Index (SCFI), so it’s difficult to predict and even harder to control.
“We must focus all our capabilities on securing the foundation for future growth. The container division must focus on securing eco-friendly fleets and infrastructure such as terminals and logistics facilities, while the bulk division must continue generating profits through stable fleet portfolio formation, strategic shippers and high-profit cargo development. In particular, since investment is the first condition for overcoming the recession and achieving sustainable growth, we should pay close attention to even the slightest possibility this year and devote all our energy to new investments and developing new growth engines.”
By 2026, HMM targets to expand its fleet to 1.2 million TEU. In July 2022, HMM ordered three 1,800 TEU ships from Hyundai Mipo Dockyard for delivery in 2024, and in 2021, contracted six 13,000 TEU vessels each at Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, for delivery in 2023. Last month, HMM reportedly sought quotations from major South Korean shipbuilders, with plans to order nine 8,000 TEU methanol-powered container ships.
Kim also touched on HMM’s environmental, social and governance (ESG) ratings.
He stated, “In terms of environmental regulation, it is necessary to keep pace by establishing an eco-friendly logistics system such as the systematic management of carbon emission targets, low-carbon ships and new fuels. In terms of society, we need to spread the value of win-win cooperation both inside and outside the company, going beyond customers, to suppliers, and even social contribution activities.”
Kim alluded to the need to develop human resources, two years after HMM’s management resolved a remuneration dispute with staff.
He noted, “Our company has come through numerous crises over the past 46 years. This year, many difficulties are expected to come close to past crises. However, we are confident that we will overcome the crisis and achieve meaningful growth if we strive to become a top-tier company.”
Martina Li
Asia Correspondent
