HMM Expands Container Fleet on U.S. Routes to Meet Future Demand

HMM, a leading South Korean shipping company, is increasing its container vessel capacity on the U.S. routes in anticipation of future demand growth. This strategic move aims to strengthen HMM’s market share on its key trans-Pacific trade lane and capitalize on favorable market conditions.

Targeting the U.S. Market

According to the Korea Maritime Institute, the global cargo volume to North American ports is projected to increase by 7.2% in 2024. This growth rate significantly outpaces the 1.8% expected for Europe, which has been HMM’s second-highest revenue-generating region. Compared to the pre-pandemic year of 2019, the Americas have seen a 10.7% increase in cargo volume, while Europe experienced a 1.1% decline.

Enhancing Market Position

In 2023, HMM’s market share on the Asia-to-North America route was 6.4%, and 8.9% on the North America-to-Asia route, according to U.S. customs statistics service JOC-PIERS. By deploying additional vessels, HMM aims to strengthen its position in this lucrative trade lane.

Capitalizing on Favorable Conditions

The decision to expand capacity on the U.S. routes coincides with high freight rates, presenting an opportunity for HMM to capitalize on favorable market conditions. As the industry approaches the peak season for long-term contract negotiations, maintaining a strong presence on the trans-Pacific trade could prove advantageous for HMM’s profitability.

Conclusion

HMM’s strategic move to increase container vessel capacity on the U.S. routes reflects the company’s efforts to align with projected demand growth and secure a stronger foothold in the lucrative trans-Pacific trade. By capitalizing on favorable market conditions and strengthening its presence on a key trade lane, HMM aims to bolster its financial performance and solidify its position as a leading global shipping company.