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Maritime Research

Container Shipping Special Report: HMM - what lies ahead?

Spotlight Report

May 2018

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DMFR Special Report HMM

Special Financial Report - Hyundai Merchant Marine (HMM) - What lies ahead?

In a quest to establish itself as a global operator and serve as the Korean government’s new flagship operator, HMM has embarked on an ambitious expansion plan by announcing its intention to order 12 eco-vessels of 20,000 teu and eight of 14,000 teu. This significant commitment raises many questions, which DMFR has sought to address in this latest Special Report. The report includes in-depth analysis of the issues faced and assesses HMM’s future prospects given the current and anticipated market context.

 

Key questions addressed by the report include:

  • What prompted the plan?
  • What is the role of the South Korean government?
  • What does the cost structure look like?
  • What are HMM’s key challenges?
  • How do the company’s financials measure up?


Report contents

Company overview

  • Brief background

How it all began?

  • Hanjin’s debacle revisited and its impact on HMM
  • HMM’s 2M alliance

What is driving the new orders?

  • Fiscal stimulus
  • Sulphur regulations
  • The shipyard factor
  • HMM’s ambition
  • Scale-up or perish

How is HMM planning to achieve its 2021 target to control 5% of the market?

  • The role of the state
  • Strategic expansion

Key challenges

  • Running new services profitable
  • Managing the chartered-in fleet
  • Debt reduction

Financial analysis

  • Financial metrics
  • Operational metrics
  • Government support
  • Capex status
  • HMM Bond analysis
  • Z-score

Outlook

 


More Information

Fast facts...

  • Company overview
  • How it all began?
  • What is driving the new orders?
  • How is HMM planning to achieve its targets?
  • Key challenges
  • Financial analysis
  • Outlook

News

Challenges and opportunities for the global port and shipping industry

Challenges and opportunities for the global port and shipping industry
Presentation given by Neil Davidson, Drewry Senior Analyst Ports and Terminals at the China Maritime Day Forum, 11 July 2018.

Higher container equipment prices to squeeze leasing rate returns

Container equipment rental rates and cash investment returns remain weak, despite last year’s recovery, according to Drewry’s latest Container Census & Leasing annual.

Manning costs rising on trade recovery and officer supply shortage

Cost growth returned to seafaring in 2018 and is projected to accelerate moderately, according to Drewry’s latest Manning Annual.

Trade wars threaten to derail container revival

The risk to container shipping from US-led trade wars is currently low, but potentially very damaging, according to Drewry’s latest Container Forecaster.

Events

Project Cargo Summit

Susan Oatway to discuss the heavy lift and MPV shipping markets.

TPM Asia

Drewry to discuss the growth of China as a buyer and the impact on freight rates, port infrastructure, and regional supply chains.

Maritime HR & Crew Management

Martin Dixon to discuss the outlook for crew costs and the implications of new technology.