HMM in major dry bulk expansion with newbuilding and S&P deals

In a recent filing, HMM disclosed its total orderbook across all shipping segments, revealing a previously unreported order for two small-sized bulk carriers, believed to be Handysize vessels. The contract, placed with Jiangmen Nanyang Ship Engineering in China, is valued at US$65M. According to Xclusiv Shipbrokers, Chinese shipbuilders are currently offering Handysize vessels at US$31M-$32M per unit.

HMM noted the contract was signed in 2024. However, the order was absent from its Q3 2024 earnings report released last November, suggesting the deal was finalised in the final days of last year.

This latest newbuilding order follows a 2023 contract for four 38,000-dwt multi-purpose heavy-lift vessels with CSSC Huangpu Wenchong Shipbuilding. HMM also runs a newbuilding programme for container vessels, car carriers and product tankers.

Active in the secondhand market

In addition to newbuilds, HMM remains highly active in the sale and purchase (S&P) market. According to its Q4 2024 earnings report, the company expanded its dry bulk fleet by 301,000 dwt in 2024 through the acquisition of eight vessels.

Data from Equasis indicates HMM took delivery of at least five bulk carriers in the second half of 2024, with an average vessel age of approximately seven years. These acquisitions cover a broad range of dry bulk segments, from Handysize to Newcastlemax tonnage.

Further, shipbrokers recently linked HMM to the purchase of a 2025-built Japanese Handysize bulk carrier for US$32M. The transaction reportedly took place in the secondhand vessel market last week, though HMM has yet to confirm the deal.

As of December 2024, HMM’s bulk carrier fleet consisted of 24 vessels (18 owned and six chartered-in), with a total capacity exceeding 2.2M dwt. Of these, 17 are dedicated dry bulk carriers, while seven are multi-purpose ships, according to fleet data from HMM’s latest financial presentation.

Huge expansion plans

HMM has set a goal of becoming South Korea’s leading bulk operator by 2030. The company aims to increase its tanker and dry bulk fleet from 42 vessels at the end of 2024 to 110 vessels by 2030, requiring an estimated US$3.9Bn in investment.

Despite its aggressive dry bulk expansion, HMM’s primary focus remains in the container shipping sector, where it plans to invest over US$11.0Bn in new vessels, terminal infrastructure and logistics projects.

Notably, HMM has also been linked to the potential acquisition of a majority stake in South Korean shipowner SK Shipping, according to local media reports. The acquisition, if confirmed, is expected to involve SK Shipping’s tanker, bulk carrier and LPG carrier businesses, while excluding its LNG carrier operations due to an existing clause.

In response to these market rumours, HMM commented in late February, "We have been selected as the preferred bidder for certain SK Shipping assets, and are currently reviewing the matter". However, no final decision was confirmed at the time.