South Korea's largest shipping company HMM is expanding its bulk carrier business to offset deteriorating container shipping profits, reports Asia Business Daily.

Industry data showed HMM's bulk cargo transport volume reached 31 million tons in the first three quarters of 2025, up 10 per cent from 28.16 million tons a year earlier. Container shipping volume rose only three per cent to 2.93 million TEU in the same period.

Bulk carriers, which transport minerals, grains, oil and LNG, rely on long-term contracts that provide more stable earnings than container shipping, which is highly sensitive to economic cycles.

The Shanghai Containerised Freight Index averaged 1,598 this year, down 36 per cent from 2024, and fell to 1,114.52 at the end of the third quarter. Analysts warned oversupply and fading demand could trigger a downturn lasting more than five years.

Kim Byungjoo of the Korea Maritime Institute forecast the SCFI could average between 1,100 and 1,300 next year, a further 18-31 per cent drop. Yang Jongseo of the Export-Import Bank of Korea cautioned that without a dramatic boom, the market could face a severe recession, with risks of a catastrophic slump if geopolitical tensions ease and Suez Canal traffic normalises.

HMM has signed long-term contracts worth KRW636 billion (US$40.7 million)and KRW430 billion with Brazil's Vale this year, and launched a joint venture with UAE-based BGN Group to expand LPG shipping. An HMM official said the company plans to grow its bulk carrier fleet from 49 vessels to 110 by 2030 as part of its diversification strategy.

https://www.shippingazette.com/news?news_id=9251200000665