HMM, Korea’s only major shipping company, has reportedly decided to order approximately 10 small container ships from a Chinese shipyard, citing the inability of domestic small and medium-sized shipbuilders to match China’s price competitiveness.
According to sources from Sejong Government House and industry insiders, HMM has tentatively chosen to procure 1,900 TEU and 3,000 TEU vessels from China. These ships are expected to be deployed on niche routes across Asia, the Middle East, and Africa by 2027.
HMM, traditionally focused on ocean routes between Asia, North America, and Europe, announced in July its strategy to diversify its fleet by acquiring smaller vessels to secure new growth opportunities. Domestic shipyards participated in the bidding process, but HMM reportedly favored the Chinese shipyard due to lower costs. Industry estimates suggest Chinese-built small and medium-sized vessels are about 20% cheaper than those built domestically, benefiting from lower labor, land, and raw material costs.
An HMM official emphasized that the final decision is still under consideration, stating, “We are comprehensively evaluating ship prices, delivery timing, and options for both newbuilds and secondhand vessels. Nothing has been confirmed yet.”
Although the U.S. Trade Representative (USTR) maintains regulations on Chinese ships, vessels under 4,000 TEUs are exempted, enabling the new ships to operate on feeder routes connecting major U.S. hub ports to smaller regional ports.
Experts warn that Korea’s small and medium-sized shipbuilding industry, already shrinking, is facing critical challenges. “Small and medium-sized shipbuilders are essential to the entire shipbuilding ecosystem in Korea,” said Shim Sang-mok, professor of shipbuilding and marine systems engineering at Pukyong National University. “Government support and industry-led recovery efforts are urgently needed.”
This development underscores the growing pressure on Korea’s domestic shipbuilding sector to remain competitive against lower-cost international rivals.
