HMM Domestic SME Support Ships Set Sail from Busan "Repaying Public Support"

Export Companies 'Bewildered' by Shortage of Export Containers
HMM Deploys 2 Ships on Busan-LA Direct Route "The Reason National Shipping Companies Are Needed"

[Asia Economy Reporter Yu Je-hoon] Two temporary vessels organized by HMM to support domestic export companies have departed from Busan. According to HMM on the 1st, the two vessels, 'HMM Prestige' and 'HMM Integral,' loaded a total of 7,980 TEU (a unit referring to one 6m container) of cargo and departed from Busan Port to Los Angeles (LA), USA, the day before.

This follows the 'Inter-agency Memorandum of Understanding for Win-Win Cooperation between National Shipping Companies and Exporting Small and Medium Enterprises' signed on the 29th of last month by the Ministry of Oceans and Fisheries, the Ministry of SMEs and Startups, the Korea Shipowners' Association, and the Small and Medium Business Corporation.

Domestic export companies have recently faced difficulties as export contract volumes increased due to US consumer stimulus and Black Friday preparations, but they have been unable to secure export container vessels. This is because overseas shipping companies have concentrated vessels on the highly profitable China-US route, exacerbating the shortage of vessels available to carry Korean cargo.

HMM, having achieved normalization through public funds so far, has deployed temporary vessels three times as a national shipping company. In particular, this third deployment involved sending two vessels at once to address the recently intensified vessel shortage problem. According to HMM, about 60% of the cargo loaded on these two vessels consisted of cargo from medium-sized and small enterprises.

In fact, with HMM's support, some export companies avoided delivery delays. Steel company A was able to export 30 TEU of cargo, which had been delayed several times despite prior contracts with overseas shipping companies, through a national shipping company. Automotive parts company B also loaded 1,200 TEU of related parts supplied to a global automobile manufacturer. It is said that if this volume was not delivered within November, the operation of automobile production facilities would have been at risk of suspension.

HMM plans to deploy at least one temporary vessel every month until February next year, when vessel shortages are expected due to increased export volumes. Additionally, to resolve export difficulties faced by small and medium enterprises, HMM will open a hotline and establish a help desk in cooperation with the Small and Medium Business Corporation to build a cooperative system.

HMM CEO Bae Jae-hoon stated, "It is natural for HMM, revived through the government's five-year shipping reconstruction plan, to give back to the country and its people," adding, "We will definitely prove why national shipping companies are necessary and important."