[060120.EN.SEA] Unprecedented Eco-rules, Oversupply, Obstructs Positive Outlook: HMM

THE "unprecedented" scale of environmental regulations the industry is facing, which together with the prevailing uncertainty and oversupply in the market is "obstructing a positive outlook", says Hyundai Merchant Marine (HMM) president and CEO Bae Jae-hoon.

"It is unpredictable whether the business environment approaching us will be a tailwind or headwind, nor can we control it as we wish,? he said, reported Colchester's Seatrade Maritime News.

Mr Bae said HMM is looking at setting up an R&D structure to cope with the environmental regulation paradigm change, mainly via the use of eco-friendly fuel and energy-efficient technology in ship design.

"In specific, we should be fully committed to digital transformation to increase operational efficiency and service quality,?he said.

HMM will commence a new cooperation with THE Alliance starting April this year, and its 24,000-TEU ship will be delivered from the second quarter and deployed in the Far East-North Europe trade.

"From the US-China trade dispute to Brexit, uncertainties in the global trade environment have directly affected the world trade volume. The growth rate of shipping capacity is expected to increase as well,?Mr Bae said.

Source : HKSG.