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Hyundai Merchant Marine plans to double vessel capacity by 2022

Monday, 15 January 2018 02:08

HYUNDAI Merchant Marine (HMM) plans to double vessel capacity by launching mega ships by 2022, CEO Yoo Chang-Keun told employees in a New Year's address.

HMM is the latest of several carriers to announce plans for increased capacity and mega containerships. Maersk Line, CMA CGM, MSC and MOL have already put vessels of 22,000 TEU or more into service.

Mr Yoo said HMM hit the four million TEU mark in 2017 from three million TEU lifted in 2016, reported American Shipper.

"I am convinced that these achievements have laid a solid foundation for our long-term plan where we continue to consider ways of doubling our vessel capacity by 2022 including the launching of mega containerships as we deem the environmental regulations in 2020 as a golden opportunity for our resurgence," he said.

Industry experts have predicted protectionism and instability, said Mr Yoo, and in order to meet capacity goals, he issued several directives, including the launch of competitive products in the east-west trade lanes with expanded coverage in Asia via the K2 cooperation.

The K2 consortium was formed earlier in 2017 with two smaller South Korean carriers - Heung-A Shipping and Sinokor Merchant Marine - for moving cargo within Asia.

In 2017, HMM ordered two 11,000-TEU vessels and announced plans to issue rights to raise $620 million in October to add ships to its fleet and buy stakes in shipping terminals in North America and elsewhere.