Report: HMM Looks to Accelerate Diversification into Bulkers
South Korean carrier HMM is reportedly looking to accelerate its diversification into dry bulk carriers in response to the growing pressures on the container shipping segment. The company has mapped for the past few years a strategy to expand into non-container segments, but according to a report in the Korean media, it has changed the execution after the collapse of talks to acquire assets from SK Shipping.
The acquisition of SK would have provided HMM with a strong presence as the company has holdings in both the Cape (100,000 to 300,000 DWT) and Panamax (60,000 to 100,000 DWT) sectors. However, they did not reach terms, and the negotiations were canceled after more than six months.
HMM currently has small fleets in all the major dry bulk sectors, Cape, Supramax, Panamax, and Handy, but is anxious to grow the operations. A spokesperson told the Korean news outlet Maeil Business that bulker carriers were attractive because they have less volatile contract rates and are relatively easy to secure long-term deals.
Maeil Business reports HMM signed a 10-year deal in May with Brazilian mining company Vale. It requires three vessels according to the story, and an expected future contract would require two more large bulk carriers. HMM previously said it would take its fleet of approximately 46 bulk carriers to about 110 by 2030. It calls for growing its DWT capacity from 6.3 million to nearly 12.3 million tons. By comparison, HMM currently operates approximately 86 containerships with seven additional 9,000 TEU vessels due for delivery by the first half of 2026.
The story says that HMM has decided to move forward with individual dry bulk carrier acquisitions to accelerate its diversification. Maeil Business reports the company recently purchased a second bulk carrier and is negotiating for three more.
HMM reported its first half of 2025 financial results on August 13, highlighting that it would continue diversification in the face of expected increased market volatility. It pointed to the ongoing trade negotiations, saying it expects regional demand shifts to sustain supply chain congestion.
The company reported strong increases in revenues for the first half of 2025 and profits, but declines in its operating profits. The second quarter, however, saw a small decline in revenues and steep declines in operating and net profits.
Commenting on its diversification strategy, management highlighted that it will begin to take delivery of seven PCTC vehicle carriers starting in September 2025. Ordered in 2023, they are HMM’s first entry into the sector and will be operated under long-term charters to Hyundai Glovis. It is also building four multi-purpose vessels and has two MR chemical tankers on order.
An HMM spokesperson told Maeil Business that with a weak outlook due to expected declines in shipping rates, HMM looks to increase its share of bulk carrier operations. It believes this can help it to stabilize earnings.