HMM CEO to Step Down
Chang Keun Yoo, president and CEO of South Korea container line Hyundai Merchant Marine (HMM) has decided to resign from his position next month.Chang-Keun Yoo has been Chief Executive Officer and President of Hyundai Merchant Marine Co. Ltd since April 02, 2013 and serves as its Chairman of the Board. Yoo served as an Executive Vice President of Hyundai Merchant Marine Co. Ltd., and Head of HMM Europe Ltd.According to a report in WSJ, he has offered to resign after months of being under pressure from its top creditor to quit over failures in its turnaround.
Sunken Stellar Daisy Located
The Stellar Daisy, a massive South Korean tanker that sank in March 2017, was spotted on the floor of the South Atlantic Ocean nearly two years later.Exploration company Ocean Infinity said that it has located the wreck of the lost South Korean tanker, Stellar Daisy, at a depth of 3,461 meters in the South Atlantic Ocean, approximately 1,800 nautical miles due west of Cape Town.Stellar Daisy sank on 31 March 2017, transporting iron ore from Brazil to China. Tragically, 22 of the 24 crew were lost.Working from Seabed Constructor…
New Maritime Connectivity Platform Launched
The Maritime Connectivity Platform Consortium has been established and a Platform launched last Friday during the conference e-Navigation Underway 2019.The Maritime Connectivity Platform (MCP) is an open source technology a digital maritime domain. It brings common internet standards to maritime navigation and transportation systems.MCP enables infrastructures for efficient, secure, reliable and seamless electronic information exchange among maritime stakeholders using available communication systems.
The Maritime Connectivity Platform Consortium
On February 8, 2019, the Maritime Connectivity Platform Consortium (MCC) was established with a signature ceremony during the conference ‘e-navigation underway international 2019’.The Maritime Connectivity Platform (MCP) is an open source technology a digital maritime domain. It brings common internet standards to maritime navigation and transportation systems.MCP enables infrastructures for efficient, secure, reliable and seamless electronic information exchange among maritime stakeholders using available communication systems.
Interview: Jeong-kie Lee, Chairman, Korean Register & IACS
This month we caught up with Jeong-kie Lee, Chairman and CEO of the Korean Register and also the Chairman of the International Association of Classification Societies (IACS), for his insights on the dominant trends moving the maritime industry into the future.The maritime industry has been challenged, to say the least. Today, where do you see challenge? Where do you see opportunity?The maritime industry is in a state of extreme upheaval, with private and public organizations having to deal with a wide range of ever changing…
Government Okays USD 1.2 bln for Korea Ocean Business Corporation
The government of South Korea decided to invest 1.35 trillion won (USD 1.2 billion) in Korea Ocean Business Corporation (KOBC). The compnay was created in order to help its shipping industry stand on its feet, especially after the bankruptcy of Hanjin Shipping.Yonhap reported quoting the finance ministry that Cabinet approved a plan to contribute 12.7-percent stakes in each of the country's four port authorities to the KOBC.Earlier this month, the corporation was officially launched in Busan…
HMM to Order 20 Mega Containerships
South Korea’s largest shipping line Hyundai Merchant Marine (HMM) announced it will order 20 new containerships, including eight 14,000 TEU vessels and 12 ships above 20,000 TEU. The announcement comes less than a week after the South Korean government unveiled its Five-year Plan for Rebuilding Korean Shipping. HMM said it has sent a request for proposal (RFP) to eligible shipbuilders. Once a builder is selected, HMM will decide between scrubbers or liquefied natural gas (LNG) bunkering in order to comply with the environmental regulations due to enter force in 2020.
South Korea Restuctures Mid-Sized Shipbuilders
The South Korean government decided to restructure two financially-troubled mid-sized shipbuilders, said a report in Business Korea. While filing for court receivership for the debt-ridden Sungdong Shipbuilding, the government has decided to save STX Offshore and Shipbuilding Co. on condition of slashing 75 percent of its production workforce. The two shipbuilders are heavily indebted to Korea's two state-run banks, as they have struggled with snowballing losses amid unfavorable oil prices and the worldwide industry downturn.
Hyundai Merchant Marine’s Expansion Plans: Drewry
Korean carrier Hyundai Merchant Marine (HMM)’s expansion plans are incompatible with market stability. Will it settle for more limited ambitions? An Analysis by Drewry. South Korean carrier Hyundai Merchant Marine (HMM) is back in the news with an impending order for as many as 14 Ultra Large Container Vessels (ULCV) of 22,000 teu and for its intriguing re-entrance into the Asia-Europe market as a vessel provider, with reports suggesting a new standalone service called Asia Europe Express (AEX) using 10 Classic Panamax ships of 4,700 teu will commence in April.
Shipping Carriers M&A to Wane in 2018 - iContainers
Mergers and acquisitions activities for shipping carriers are expected to slow down in 2018, and instead will likely to pivot to freight forwarders, where the industry can expect to see an increase in M&A talks, says online freight forwarder iContainers. Following an unprecedented number of mergers and acquisitions over the past few years, iContainers says this trend can now be expected to ebb. “In terms of carriers, I doubt we will see anymore movements in the near future. I don’t see any major players breaking right now.
Chinese Shipbuilder Wins Award for Largest Heavy Lifting Vessel
Shanghai Zhenhua Heavy Industries Company has built the largest heavy lifting vessel in the world which can carry up to 12,000 tons. The vessel, which took eight years to design and build, was awarded a special prize at the 19th China International Industry Fair in Shanghai. Seen as a symbol of China's growing engineering prowess in ocean technologies, the Zhenhua 30 was previously tested in front of representatives from ABS class society, domestic and international clients and the Chinese and Korean government.
DSME Posts Profit for Q3
South Korean yard giant Daewoo Shipbuilding and Marine Engineering (DSME) ended the third quarter of this year with a profit of KRW 45.7 billion (USD 41 million), compared to a net loss of KRW 284 billion posted a year earlier, Yonhap said. The troubled shipbuilder is significantly better off than last year after a rescue package from the South Korean government in the spring. DSME, which has battled a highly publicised liquidity crunch for the past two years, posted profit for the third straight quarter from July through September…
Korean Register Opens ICT Center
Korean Register (KR) has opened a new ICT (information communications technology) Center to enhance the application of advanced information and ICT across the maritime and ship classification industries. According to KR, the new high-tech facility has been launched in response to demand from the Korean shipbuilding and marine transport industries, keen to be more competitive in a challenging market. It seeks to address the fact that advanced onshore technologies have been difficult to adapt for maritime applications…
Hyundai Merchant Sees More Losses
South Korea's largest deep sea carrier Hyundai Merchant Marine expects to post losses through the first half of next year due to poor market conditions, reports Bloomberg quoting its CEO Yoo Chang-keun. “This year will be the year to strengthen our financials,” Yoo told Bloomberg. “We are targeting to make an operating profit in the third quarter of next year. By early next year, we expect much of the overcapacity in the market will be resolved. Yoo says that HMM is also making investments in overseas port operations…
Happy Holidays from Hanjin
Barry Parker dissects one the most disruptive events ever to impact the intermodal supply chain. There is more pain to come, lessons to be learned – and corrections applied. The Hanjin Shipping debacle, brewing over time and seeing a full blown eruption in late August, is still ongoing. The company voluntarily opted to enter ‘receivership,’ followed by a Chapter 15 bankruptcy filing in the States, shortly after the initial bombshell. The move provided a template for Hanjin vessels to dock, and cargo to be discharged.
NRF Pushes Hanjin Concerns with Commerce Department
The National Retail Federation and the Hardwood Federation has led a coalition of 120 organizations representing retailers, manufacturers, agribusinesses and other sectors affected by the Hanjin Shipping bankruptcy in sending a letter to Commerce Secretary Penny Pritzker outlining specific concerns and urging her continued leadership in bringing about a resolution. “U.S. businesses rely on predictability in their supply chains, particularly during the busiest shipping season of the year,” wrote NRF and the other coalition members.
South Korea Mulls LNG Bunkering Hub
A group of South Korean companies including shipbuilders have come together to establish an association dedicated to developing liquefied natural gas (LNG) bunkering facilities and infrastructures including LNG-fueled vessels, says a report in the Pulse. Last week, officials representing 21 private and state-run entities in Korea gathered to attend the inaugural meeting of the LNG Bunkering Industrial Association. They were from major shipbuilding and energy companies including Hyundai Heavy Industries Co.…
Korea Selects Intellian as 'World Class 300' Company
Intellian’s appointment to Korea’s prestigious ‘World Class 300’ list of the country’s most promising technology companies is a distinguished achievement and confirms its commanding lead in the mobile satellite communications terminal sector. Intellian, the global leader in maritime satellite communication antenna systems is now a fully-fledged member of the exclusive “club” comprising a group of Korean corporates recognized as the best and brightest in creative innovation, outstanding development and future market potential.
Maersk May Swallow Hyundai Merchant
Business Korea reports that rumours are now rife in the container business world that Maersk could swoop on Hyundai Merchant Marine and subsume its activities into their own business. Even though it is still a prediction, if the prediction becomes a reality, it is highly likely that the sell-off of Hyundai Merchant Marine will receive strong backlash with a mounting criticism that the government sold a major national flag carrier for a giveaway price. According to the shipping industry and creditors…
S. Korea, Denmark in Flag State Dialogue
Six government officials from South Korea are visiting the Danish Maritime Authority and, in this connection, they exchange experiences and knowledge about shipping, inspections and safety with the Danish authorities. The South Korean government officials are, inter alia, responsible for passenger ship safety in South Korea and are visiting Europe for other reasons as well. "This is a good example of how we exchange knowledge and experience with other countries. This dialogue is an important part of our endeavours to enhance safety…
Seaspan Rejects Hanjin’s Proposal on Charter Rate
The container ship-leasing company Seaspan Corp declined Hanjin Shipping Co.’s request for a cut in charter rates by about 30 percent, dealing a blow to efforts by South Korea’s biggest liner to revamp debt amid a prolonged trade slump, reports Bloomberg. Hanjin Shipping operates seven container vessels leased from Seaspan. Seaspan recently said there were $11.6 million in charter-hire arrears from Hanjin Shipping. Gerry Wang, CEO of Seaspan, said: “We do not accept any rate cut. We have never done it. We won’t tolerate a contract re-negotiation.
Cyber Security: Wake Up Call
Before any vessel gets ready to head out to sea, shore-based personnel and onboard crew run down a lengthy list of safety, compliance and regulatory checks, all part of a standard risk management exercise. What’s often not on that list is an invisible, but looming risk that if ignored, could leave ships off course, off schedule or even dead in the water, thanks to infected computer systems, phony or corrupted charts and blocked communications signals. Cyber crime has come of age in the maritime sector.
HMM-Hanjin Marriage on Anvil
The Korean government has said that it will consider merging ailing Hyundai Merchant Marine (HMM) and Hanjin Shipping should they successfully normalize their management, according to The Korea Times. "Once the normalization program for the two shipping companies is wrapped up, the government will consider various plans including the merger of the companies," said Financial Services Commission (FSC) Chairman Yim Jong-yong. He said, “The possibility of the merger is not so different from the direction of our restructuring plans for shipping companies revealed earlier.
Seoul's Effort to Calm Shipping Sector Storm
South Korea will pump $9.5bn (11 trillion won) into state-run policy lenders reeling from huge losses on loans made to the beleaguered shipbuilding and shipping sectors to help them deal with further corporate distress, says FT. South Korea's fund will support two state-run banks most exposed to shipping and shipbuilding firms currently being restructured. The China slowdown is partly to blame. The two state-run banks to be capitalised are Korea Development Bank (KDB) and the Export-Import Bank of Korea (KEXIM).
Samsung, Daewoo Merger on the Way?
As the Korea government is pushing for restructuring of the faltering shipbuilding industry, speculation grows over a possible merger between the country’s two major shipbuilders — Samsung Heavy Industries and Daewoo Shipbuilding and Marine Engineering, reports Korea Herald. South Korea's shipbuilding sector has been facing rough weather. The global economic slowdown is severely impacting the country's so-called big three in the industry: Hyundai Heavy Industries, followed by second-ranked Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries.
Drewry: HMM, Hanjin Mull Merger
A merger between Hyundai Merchant Marine (HMM) and Hanjin Shipping remains a real possibility, says the London-based analyst firmDrewry, who has looked at how such a company will look like. The research firm said in its Container Insight Weekly previous merger talks between HMM and Hanjin were put to rest by the Korean government last year, but the debt situation in both companies was causing serious concern in local circles and could bring the companies back to the table. “A…