HMM Aims To Reach 1 Million TEU Fleet Capacity By 2022

HMM celebrated the 1st anniversary of its launching company under a new mission on April 1. HMM’s initiative was promoted to provide a focal point to various newly recruited members and to create a new shipping company culture.

The change of company name is not just remembered as a shipping company, it opens up the possibility to further expand the business area have. In addition, HMM aims to become a global top class, and based on their accumulated potential,

Since the launch of the new mission and joining the new shipping alliance ‘THE Alliance’, the world’s largest 24,000 TEU container ship owner, highlights remarkable achievements such as the introduction of 12 ships, a turnaround through performance improvement, expansion of fleet capacity, and leap to the 8th place in the global shipping company ranking.

World's Largest Ship Departs On Maiden Voyage With Record_ 19,621 TEUs
Image Credits: hmm21.com

Achieve the highest performance ever ”Based on preemptive support from the government and related organizations ”

HMM achieved an operating profit of 980 billion won in 2020, surpassing its successful turnaround in 10 years, and achieving the highest performance ever recorded.

Difficulties persisted as the deficit remained for a long period of time, but the reason HMM succeeded in making a leap forward was related to the government.

This was possible because of the great support and support of the organization and the people, and the efforts of executives and employees. As it plans to acquire eight 16,000 TEU-class ultra-large container ships this year, the cost structure is expected to improve further.

Accordingly, they will focus on improving profitability through efforts to secure stable additional cargo, strengthen internal capabilities, and improve the business structure.

Registered as a regular member of the world’s three major maritime movement alliances, ‘The Alliance’

HMM started its cooperation with THE Alliance, one of the world’s three major shipping alliances, on April 1 of last year. HMM is a full member of THE Alliance with Hapag-Lloyd (Germany), ONE (Japan) and Yang Ming (Taiwan).

With the start of full-fledged activities, trust in the global shipping market is restored, cost structure improved, service routes diversified, etc. It laid the foundation for stably providing quality services.

HMM celebrated its 1st anniversary with its new mission
Image Credits: hmm21.com

In the global shipping industry, it is impossible to provide all services by a carrier alone due to the wide range of markets. For this reason, global shipping companies form an alliance to efficiently provide services, such as sharing each other’s ships.

In July 2019, HMM confirmed full membership in THE Alliance, one of the three major alliances in the world, and from April 2020. I decided to cooperate for 10 years. Become a member of THE Alliance to strengthen service network competitiveness and it provided an opportunity to restore trust.

Target of 1 million TEU of the fleet by 2022 | “Leap to become a global top-class shipping company”

In April 2020, HMM’s first 24,000 TEU class container ship HMM Algeciras was delivered. The naming ceremony was attended by President Moon Jae-in in person, and Mrs Kim Jeong-suk took the role of the godmother.

Despite the aftermath of COVID-19, the 12 largest container ships in the world with a 24,000 TEU class recorded full 32 voyages in a row. Proving the power of the super-large ship. In March 2020, HMM’s fleet amount was 430,000 TEU, and as of April 20201, it was 720,000 TEU.

The ranking of global shipping companies rose to 8th place. HMM began to receive delivery of eight 16,000 TEU-class container ships, the second super-sized series from March this year.

HMM Algeciras
Image Credits: hmm21.com

This ship is the largest ship capable of crossing the Panama Canal, and can also cross the Suez Canal, making it the European, Mediterranean, Middle Eastern. thus, it can be used in all major routes around the world.

If all eight, 16,000 TEU-class super-large ships are delivered by the first half of this year, HMM will have 77 containerships and 850,000 TEU.

In the future, we aim to achieve 1 million TEU of fleet capacity by 2022 through additional orders and chartering. In this case, Hanjin Shipping will recover its fleet before bankruptcy.

Improvement of the constitution through continuous cost reduction

Employees’ efforts to improve profitability also became one of the pillars of HMM’s leap forward. The rapid change from 2019 through cost reduction efforts

In order to steadily generate profits even in the shipping industry, waste factors have been removed and the constitution has been improved.

Per 1 TEU, including TDR (Tear Down & Redesign) activity, it has been running a ’50 dollar campaign’ that saves $20 in management and increases revenue by $30 in sales.

Active response to environmental regulations | “World’s Highest Scrubber Installation Rate”

HMM has been responding preemptively by installing scrubbers early in advance of IMO environmental regulations that began last year have.

HMM's Twelve 24,000 TEU Ships Fully Laden With Containers
Image Credits: hmm21.com

First of all, two 11,000 TEU-class container ships delivered from Hanjin Heavy Industries in July 2018 are among the mega container ships, in which the world’s first scrubber was installed.

In addition, 5 300,000-ton super-large tankers (VLCC) delivered in 2019. All scrubbers were installed to thoroughly prepare for IMO environmental regulations.

Hybrid type capable of both open and closed types even for 12 of the world’s ships with a 24,000 TEU class delivered last year. largest container.

Eco-friendly service operation is possible by installing a scrubber (HYBRID SCRUBBER), from March this year. All eight of the 16,000 TEU-class ultra-large ships to be deployed have completed the scrubber installation.

HMM currently operates approximately 70% of its fleet. By completing the scrubber installation, it is recording the highest installation rate in the world.

Digitization leading the 4th industry Preemptive introduction

HMM is the first shipping company to build a cloud-based shipping logistics system, through cloud servers located around the world and reliably able to manage the data.

Last year, the development of ‘COMPASS’, a next-generation shipping and logistics system, was completed. In addition, it was the first in the domestic shipping industry to build a ‘Fleet Control Center’, with:

  • Detailed information of HMM’s ships, including 20 super-large ships, can be monitored at a glance.
  • The engine, which is the heart of the ship, is not only supported to improve the efficiency and safe operation of the ship through management and sharing of important information.
  • Major institutions such as generators can be inspected both onshore and offshore so that quick decision-making and cost reduction can be expected.

HMM will analyze ship efficiency and analyze ship efficiency based on big data collected in real-time in the ship control room in the future.

They are also preemptively responding to the development/analysis of autonomous ships in the future.

Reference: hmm21.com

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