HMM books VLOCs

Hyundai Merchant Marine (HMM) is the second struggling Korean owner in as many weeks to place a surprise order for large bulkers.
Korea Stock Exchange

Korea Stock Exchange

The Seoul-listed firm has booked a pair of 210,000-dwt vessels for delivery in January 2017, it announced today.

A price of KRW 113.1bn ($106.6m) was placed on the contract signed with an unnamed shipbuilder for what will become the largest bulkers in the shipowner’s fleet.

Hyundai Merchant has two vessels above the 200,000-dwt mark on its roster, including a vessel built in 1990 at Hyundai Heavy Industries and a 2009-built vessel at Universal Shipbuilding.

Clarksons lists the company as having four 150,000-dwt newbuildings on order at Hanjin Heavy Industries and a pair of 82,000-dwt ships for delivery by Jiangsu New Yangzijiang Shipbuilding in 2015/2016.   

The surprise move follows hot on the heels of another cash-strapped Korean owner booking a pair of capesize vessels last week.

STX Pan Ocean, which only recently secured a debt-for-equity bailout from creditors, ordered the duo at Hanjin Heavy Industries for a combined fee of KRW 103.7bn for delivery in December 2016.

Hyundai Merchant Marine is currently undergoing a financial restructuring to stem the flow of losses.

It recently suffered a third quarter deficit of KRW 270.4bn, more than twice the KRW 118.3bn loss seen during the corresponding period of 2012.

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