HMM continues to expand its fleet by acquiring 3 regional container ships

According to foreign media reports, Han Xin Shipping (HMM) is sparing no effort to use profits to expand its fleet size. The company has invested $60.5 million to purchase three 19 year old regional container ships.

Industry insiders have stated that HMM has purchased these three ships from two companies - Thai Regional Container Lines (RCL) and Norwegian container ship owner MPC Container Ships (MPC).

According to sources, HMM purchased 2478 TEUs of "AS Paola" from MPC and 2378 TEUs of "Wana Bhum" and "Xutra Bhum" from RCL. It is said that the company paid $20.5 million for "AS Paola" and $20 million for each of the other two ships.

The price HMM paid for these three regional containers seems to be at least 23% higher than the market price of such ships. VesselsValue shows that the current values of AS Paola, Wana Bhum, and Xutra Bhum are $15.96 million, $16.17 million, and $16.33 million, respectively.

HMM is striving to achieve large-scale expansion before 2030. The company plans to significantly increase its fleet of container ships and bulk carriers to enhance its global competitiveness. Previously, HMM announced its goal to increase its container capacity from the current 84 ships with 920000 TEUs to 130 ships with 1.5 million TEUs, as the growth in the number of container ship fleets enables it to expand its global service network and routes.

HMM's bulk cargo transportation business includes dry cargo ships, oil tankers, automobile transport ships, and heavy-duty ships. The plan is to increase the number of ships from 36 with a total carrying capacity of 6.3 million dwt to 110 with a total carrying capacity of 12.28 million dwt.

According to VesselsValue, after purchasing these three regional container ships, HMM's total number of second-hand ships purchased this year will reach 12. The company previously owned 9 second-hand ships, including a 6350 TEU ultra Panamax container ship called "Hyundai Tacoma" (built in 2009), purchased from South Korean asset management company (KAMCO). HMM also purchased one Cape of Good Hope bulk carrier, three Handy bulk carriers, as well as multiple Super Handy bulk carriers and Panamax bulk carriers.

HMM's net profit in the first half of the year increased by 88% to KRW 1.14 trillion (approximately RMB 6 billion), operating profit increased by 125% to KRW 1 trillion (approximately RMB 5.3 billion), and revenue increased by 18.6% to nearly KRW 5 trillion (approximately RMB 26.5 billion).

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