09 Januari 2018

[090118.EN.BIZ] Korea Maritime Corp to Start as HMM Orders Mega Ships to Match Rivals



THE Korea Maritime Corporation and Hyundai Merchant Marine (HMM) will pay KRW3 trillion (US$2.77 billion) for 20 ships, including nine 20,000-TEU vessels and eleven 13,000-TEUers

The news came on the heels of the "Bill on the Establishment of the Korea Maritime Corporation (KMC)" that was passed on December 20 and now paves the way for South Korean flag-carrier Hyundai Merchant Marine (HMM) to grow without state impediment.

The Ministry of Oceans and Fisheries (MOF) announced on December 21 that it will form a seven-member establishment committee to be led by vice minister according to the corporation act as soon as possible to establish the KMC by the end of July when the bill is adopted into law.

Bankrupt Hanjin Shipping, the previous flag carrier, went downhill against rival Maersk Line and MSC with their unit cost-reducing mega ships in aftermath of the global downturn, reported KoreaBusiness.

In response, Japan will merge the container operations of its three big shipping companies - MOL, NYK and "K" Line next year as China has already merged Cosco with China Shipping and will soon take over Hong Kong's OOCL.

Similar moves were made by Germany's Hapag-Lloyd with its take-over of the United Arab Shipping Company, having already taken over the container business of Chile's CSAV well before French shipping giant CMA CGM bought Singapore's APL and Maersk bought Germany's Hamburg Sud.

While awaiting delivery of newbuildings, HMM has reached an agreement to lower charter costs for three years and six months with shipowners around the world on condition of the pursuit of its self-rescue plan in June last year, said the KoreaBusiness report.

Source : HKSG.

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