Hyundai Merchant Marine Co. is considering increasing its fleet as part of a long-term business plan.
Hyundai Merchant Marine Co., South Korea's second-largest shipping company, said it's considering increasing its fleet as part of a long-term business plan. The expansion plan includes buying secondhand vessels, Sohn Yong Chan, head of the investment planning team at Hyundai Merchant, said today in Busan.
"Compared to other companies, we order very few new ships and we've reached a point we need to look at our fleet plan," he said.
Shipping lines have parked vessels, delayed orders and fired staff as slumping global trade hammered trade. The companies also reduced their capacity earlier this year by returning ships they leased to ship owners, part of the reason container charter rates and the Dry Baltic Index have plunged.
About 10 percent of the world's container-ship fleet is laid up because of a lack of cargo and more vessels will likely join them, Um Kyung-A, an analyst at Shinyoung Securities Co. in Seoul, said earlier this week.