HMM extends Intra-Asia Cross Network (ICN) to Indonesia & reinstate Philippines TTP service

HMM will revamp its Intra-Asia Cross Network (ICN) service with the extension of the service to Indonesia, while splitting the exising Philippines connection to a separate Tianjin to Philippines (TTP) service. The ICN was first launched in May 2022 and replaced its former Korea Vietnam Thailand Express (KVX/KTX) that was jointly operated with KMTC and its standalone Tianjin to Philippines (TTP) service. The initial ICN operates on a two-wing butterfly pattern calling at Busan, Shanghai, Ho Chi


HMM earnings fall broadly in line with sector average

HMM’s liner EBIT fell 43%, which is broadly in line with the peers, as fall in freight rates off set increase in volume on the top line. HMM’s volume were up 12% QoQ, similar to CMA CGM and ONE, but is way ahead of Maersk and OOCL (+7% QoQ) and Hapag Lloyd (+4% QoQ).


HMM to launch new FE-India-Med service

HMM will launch a new Far East-India-Med (FIM) service from 1 August 2023 that connects Busan, Kwangyang, Shanghai, Ningbo, Shekou, Singapore, Port Klang, Kattupalli, Nhava Sheva, Mundra, Karachi, Jeddah, Damietta, Piraeus, Genoa, Valencia, Barcelona, Piraeus, Damietta, Jeddah, Karachi, Mundra, Nhava Sheva, Kattupali, Singapore, Dachan Bay, Busan. The service will be independently operated by HMM and turns in 84 days with 12 ships of 4,700 to 8,600 teu. The service will replace HMM's current Ch


HMM adds direct Jakarta to South America link

HMM has added a new call at Jakarta on the Far East-India-Latin America (FIL) service to provide a direct link between Indonesia and Latin America. The enhanced FIL service will call at Busan, Shanghai, Ningbo, Shekou, Jakarta, Singapore, Kattupalli, Santos, Paranagua, Itapoa, Itajai, Buenos Aires, Montevideo, Santos, Singapore, Hong Kong, Busan. The first call at Jakarta was made on 8 June 2023 with the 6.765 teu HYUNDAI SHANGHAI. 12 ships of 4,700-6,800 teu are deployed on the service that i


Main carriers liftings drop for 7th consecutive quarter

Container liftings for main carriers fell 6.8% YoY in 1Q 2023, accelerating from the 6.6% YoY fall in 4Q. All  9 of the main carriers recorded volume reductions, with Zim and Maersk recording the largest drops. The aggregate liftings of the 9 carriers in 1Q 2023 were even lower than the 2Q 2020 level during the first COVID wave. Despite the of the continuous improvement of the vessel turnaround time on the easing of port congestion, liner’s volume yield (liftings per slot) has continued to fall


HMM 1Q results broadly in line with peers

Results out after market on 15 May. The fall in aernings and the mid-teen EBIT margin are broadly in line with Asian liner peers already reported. But what may have gone unnoticed in the market is that HMM has quietly took the lead in having the lowest slot costs. HMM has been operating a fleet of larger average vessel size since 2016. The dramatic development between 2018 and 2020 for HMM was due to its improvement in fuel efficiency (e.g. scrubber retrofit) and reduction in dependence on cha


HMM launch ICN (Intra Cross Network) service

HMM has launched a new ICN (Intra Cross Network) service that operates on a two-wing butterfly pattern calling at Busan, Shanghai, Ho Chi Minh City, Laem Chabang, Ho Chi Minh City, Incheon, Busan, Qingdao, Shanghai, Kaohsiung, Manila, Busan, Dalian, Qingdao, Busan. The total duration will be 42 days using 6 Bangkokmax ships of 1,700 to 1,900 teu. The service starts on 19 May 2022 at Busan with the 1,805 teu PELICAN, followed by the 1,809 teu SKY RAINBOW, 1,762 teu INCEDA, 1,713 teu AS SUSANNA,


HMM launch PSX after THE Alliance drops PS8

HMM has launched a standalone PSX service that connects Shanghai, Kwangyang, Busan, Long Beach, Oakland, Busan, Kwangyang, Incheon, Shanghai using 6 ships of 10,000 teu that are shifted from the former PS8 service that was operated as part of THE Alliance's transpacific network. The PSX retakes the same port rotation and ships as the PS8, with ONE taking slots from HMM with an allocation of 2,977 teu per voyage. Hapag-Lloyd and Yang Ming will not participate on the PSX. The last PS8 sailing


HMM and NYK Bulk & Projects team up on FE-ME MPV service

HMM and NYK Bulk & Projects (NBP) have signed a collaboration agreement on 19 December 2022 to jointly operate a weekly break-bulk liner service between the Far East and Middle East. HMM currently operates 4 owned mpp ships of 30,100 dwt/1,888 teu equipped with 2 heavy-lift cranes of 320 tons that can be combined to lift 640 tons. It also charters in 1 to 2 heavy lift ships from AAL from a cooperation arrangement concluded in 2018. These mpp ships are mostly deployed on the Middle East route,


Widening Gap In EBIT Margin

The main carriers’ average EBIT margins fell by 3.4% from the 2Q peak of 54.3% to 50.9%. However, the gap between individual carriers are widening, with some notable drops at Wan Hai (down 13.0%), OOCL (down 8.3%), HMM (down 6.8%) and Yang Ming (down 6.1%). Carriers with a larger share on the Asia-US West Coast have suffered the largest margin erosion, with a sharper drop expected in 4Q 2022 as the rate malaise has spread to other tradelanes.

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