News / HMM eyes entry into trans-Atlantic alongside $16bn investment plan

Credit HMM

South Korean flagship carrier HMM hopes to break into the trans-Atlantic route now that it will be part of the Premier Alliance, which will collaborate with MSC from February 2025.

Unveiling its medium-term business plan today, a day after THE Alliance (HMM, Yang Ming and ONE) announced its rebranding as Premier Alliance, HMM’s management stated that the company will offer 30 routes through the Premier-MSC cooperation.

These comprise 12 Asia-US West Coast routes, four Asia-US East Coast routes, six Asia-North Europe routes, five Asia-Mediterranean routes and three Asia-Persian Gulf routes.

HMM’s network will be strengthened by Premier’s independently operated India-Mediterranean route and new services connecting India to north Europe and Asia to the South American East Coast.

HMM’s management said: “We’re considering participation in the Atlantic route, which has been difficult for South Korean shipping companies to enter.

“The Northern Europe route is the only one that offers direct port services to Busan, Japan, and Vietnam, which are not offered by Ocean Alliance and Gemini Cooperation. The Mediterranean route will also maximize the number of calls to Busan and major ports in China, Southeast Asia, and the Mediterranean, and will introduce new direct services to Turkey.”

HMM will pump in $13bn into its container shipping business by 2030, including $1.3bn on new containers.

The company also plans to invest $3.1bn in  container terminal facilities to boost its competitiveness.

HMM’s management said: “We want to get into the integrated logistics business by entering the highly profitable inland logistics (Off Dock Container Yard) business and providing end-to-end services.”

The $13bn also includes $8.2bn set aside for an already-announced plan to expand its shipping fleet by 1.55m teu, or 130 ships,by  2030. This includes 70 low-emission vessels. The shipping fleet expansion was launched soon after Hapag-Lloyd disclosed it would leave THE Alliance to form Gemini Cooperation with Maersk Line from February 2025.

To achieve carbon neutrality, $670m will be invested in retrofitting vessels and securing a green fuel supply chain.