[Special Stock] HMM Hits Record High Amid US Sanctions on Chinese Ships

HMM is showing strength in early trading. The news that the United States is pushing to impose fees on Chinese shipping companies and Chinese-made vessels is interpreted as a factor driving the stock price, with expectations that domestic shipping companies will benefit from the spillover effect.

As of 9:19 a.m. on the 24th, HMM is trading at 21,350 won, up 14.35% (2,680 won) from the previous close. During the session, it briefly surged to 21,550 won, setting a new 52-week high. Other shipping stocks such as Heung-A Shipping (9%) and STX Greenlogis (5%) are also showing strength.

The strength in shipping stocks today appears to be a tailwind from U.S. sanctions targeting the Chinese shipping industry. Earlier, on the 21st (local time), the U.S. Trade Representative (USTR) announced plans to impose fees on international maritime transport services related to Chinese shipping companies and Chinese-made vessels, considering China’s dominance in the maritime, logistics, and shipbuilding industries. The policy intends to charge up to 1 million dollars (approximately 1.4 billion won) per vessel each time a Chinese ship docks at a U.S. port, or up to 1,000 dollars (approximately 1.44 million won) per ton of the vessel’s cargo capacity.

Meanwhile, HMM has been selected as the preferred negotiation partner for the sale of some assets and business units of SK Shipping, as private equity firm Korea & Company has entered the sales process eight years after acquiring SK Shipping. The due diligence is scheduled to continue until mid-next month, and the sale targets reportedly include SK Shipping’s crude oil tanker, liquefied petroleum gas (LPG) vessels, and bulk carrier business units.