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:

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 profitably
• Managing the chartered-in fleet
• Debt reduction

Financial analysis

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

Outlook