💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Top S.Korean shipper HMM to invest $11.5 billion over 5 years for expansion

Published 07/14/2022, 01:58 AM
Updated 07/14/2022, 03:00 AM
© Reuters. FILE PHOTO: A cargo ship boat model is pictured in front of the HMM logo in this illustration taken March 3, 2022. REUTERS/Dado Ruvic/Illustration

SEOUL (Reuters) - HMM Co Ltd, South Korea's largest container shipping company by sales, said on Thursday it plans to invest 15 trillion won ($11.46 billion) over the next five years to sharply increase its capacity.

HMM plans to expand its shipping capacity to 1.2 million 20-foot equivalent units (TEU) from the current 820,000 TEU by 2026 and increase the number of bulk carriers to 55 from 29. Investments will also be made into terminals and logistics facilities, the company, which split from South Korean conglomerate Hyundai Group in 2016, said in a statement.

The investment plan comes amid global port congestion, which, logistics executives predicted will persist until at least early 2023, as the COVID-19 pandemic lengthens ship delivery times and the Russia-Ukraine conflict and the Shanghai lockdowns disrupt supply chains.

Shipping costs have surged 25%-30% since the start of the pandemic due to inflationary pressures that are unlikely to subside soon, according to Maersk, the world's biggest container shipping company.

© Reuters. FILE PHOTO: A cargo ship boat model is pictured in front of the HMM logo in this illustration taken March 3, 2022. REUTERS/Dado Ruvic/Illustration

($1 = 1,308.5100 won)

(The story corrects name of company to HMM Co Ltd., not Hyundai Merchant Marine, in lead paragraph.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.