HMM Reports Over Two Times Profits Compared To 2020

Hyundai Merchant Marine (HMM) observed record revenues in 2021. The numbers surged over twofold from what was recorded in 2020, as global supply chain congestions and increased freight rates keep boosting ocean liner profitability, the firm mentioned February 14.

Profits and revenue reached a record high in 2021, driven by high freight rates and enhanced fleet operations, including twelve 24,000 TEU container vessels, HMM mentioned in a statement.
Further details have not been released.

Several ocean liners are going to report significant improvement in their financial results for 2021, as logistical constraints increased freight rates to a record level.

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

HMM’s highlights from 2021 include signing new contracts with Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding and Marine Engineering (DSME) for 12 13,000 TEU container vessels. This cost a total of $1.57 billion.

In a statement, HMM declared that per an agreement with DSME, each firm will construct six vessels that are due for delivery by 2024’s first half. All vessels will boast hybrid scrubbers and made to be LNG-ready.

In March, the shipping line declared that its first-ever container vessel in the company’s mega-ship fleet had departed from the Port of Busan for its maiden voyage.

The vessel had a capacity of 16,010 TEU and had been equipped with 1,200 plugs to take on reefer containers. The firm introduced its Far East-India-Latin America (FIL) service.

The service started from Busan on 7 December and a full circulation is expected to take 84 days. Ocean freight rates are likely to remain high even this year, the firm mentioned in their report. The demand for products, a major factor in US supply chain issues, shows zero signs of reducing.

HMM ranks eighth in the list of largest container carriers in the world with a TEU of 817,300 and a fleet spanning 130 containerships per Alphaliner, a maritime data services company.

Reference: spglobal.com

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