Hyundai Merchant Marine Pauses New Ship Orders Amid Market Uncertainties
South Korea's Hyundai Merchant Marine (011200.KS), the world’s eighth-largest liner, has decided to pause finalizing newbuild orders for at least ten additional LNG dual-fuel container ships. This shift in strategy signals a move toward energy transportation assets such as Suezmax tankers and very large gas carriers. The decision comes amid growing concerns over market oversupply from recent ship deliveries, rising costs due to the Middle East crisis, and U.S. tariff policies. Despite revenue of $7.5–$7.7 billion in 2025—a decline compared to 2024—HMM remains ahead of its Korean peers. The company has secured over $1 billion for new bulk carriers and gas vessels with deliveries through 2031, while also expanding into joint ventures like one with energy trader BGN. Shinhan Investment & Securities forecasts improved Q2 revenue and operating profit in 2026 compared to the previous year. However, it maintains a Neutral rating for HMM without setting a target price.
Topics: container lines LNG carriers shipping Suezmax tankers VLCCs