HMM, Korea's largest shipping company, is accelerating efforts to expand its business portfolio toward bulk carriers, shifting away from its concentration on container ships. Having secured full government support following the recent relocation of its headquarters to Busan, HMM plans to invest more than 5 trillion won to expand its bulk fleet to 110 vessels. Bulk carriers allow stable operations in a volatile shipping market and are expected to contribute to HMM's leap toward becoming a global top-tier shipping company while improving its earnings.
According to the shipping industry on Tuesday, HMM placed new orders the previous day for a total of 10 vessels, including eight bulk carriers and two gas carriers, worth 1.6641 trillion won. HMM explained that the decision was made to strengthen the competitiveness of its bulk carrier business. Bulk carriers refer to cargo-only ships that transport unpackaged cargo such as grain, coal and iron ore loaded directly into the ship's cargo holds. They are broadly divided into energy carriers such as oil tankers and dry bulk carriers.
HMM holds container capacity ranking first in Korea and eighth globally, but its structure is vulnerable to market volatility as more than 80% of its revenue depends on the container segment. Unlike container ships, bulk carriers feature smaller fluctuations in contract unit prices and frequently involve long-term contracts. This is why HMM is seeking to increase its bulk carrier share as a means to stabilize earnings that swing widely depending on market conditions.
HMM has been working in earnest to expand its bulk fleet since last year, based on a mid- to long-term investment roadmap worth 23.5 trillion won. HMM increased its bulk carriers from 36 in 2024 to 61 currently, and analysts say the green light is on for securing 110 vessels by 2030 by newly ordering around 15 ships. Compared with its plan to increase container ships by 55%, from 84 to 130 over the same period, this shows how much HMM is focusing on expanding its bulk carrier business.
HMM's dry bulk carriers numbered 23 as of the first quarter of this year, up seven from a year earlier, thanks to secondhand vessel purchases and chartering. Multipurpose vessels also increased by three, from eight in the first quarter of last year to 11 in the first quarter of this year. HMM also purchased two liquefied petroleum gas (LPG) carriers, bringing the total to three. It also added three new pure car and truck carriers (PCTC).
As a result, HMM's fleet composition is rapidly changing. The bulk carrier share stood at just 33.6% at the end of 2024, but rose to 38.6% by the end of May this year, climbing five percentage points in one year and five months. Deliveries are scheduled in succession next year, including two very large crude carriers (VLCC) and two PCTCs, and HMM's high dependence on container ships is expected to ease quickly. "Strengthening the bulk business means simultaneously pursuing quantitative and qualitative growth, such as diversifying vessel types and expanding long-term contracts," an HMM official said. "We plan to continue investing to secure vessels at the right time."
As HMM accelerates the diversification of its vessel types, the scale of its investment is also growing to record levels. HMM's vessel investment in the first quarter of this year reached 1.571 trillion won. This combined figure for both container ships and bulk carriers marks the largest quarterly vessel investment ever. It amounts to executing 85% of last year's full-year vessel investment (1.8436 trillion won) in just three months.
HMM, which moved its headquarters to Busan, home to the world's seventh-largest container port, also plans to maximize the utilization of its core container ships. As part of this, it introduced a "hub-and-spoke strategy" on the Asia–Northern Europe route this year. The key is to build feeder networks at core hub ports where cargo volume is concentrated. To this end, HMM is continuously searching for competitive small container ships.
With labor and management agreeing on the headquarters relocation, a campaign pledge of President Lee Jae-myung, HMM can now expect full government support in areas such as fiscal and tax measures. The Busan Chamber of Commerce and Industry estimated that the headquarters relocation would generate a production inducement effect of nearly 7.7 trillion won over five years and create 16,040 direct and indirect jobs. "The faster the company grows, the greater the mutual benefits with local communities such as Busan," an HMM official said. "Financial sector funding support for growth sectors is going smoothly."
