HMM Pauses LNG Shipping Comeback: Weak Outlook & Sale

Global shipping firm HMM has paused its anticipated LNG shipping comeback, citing a challenging freight outlook and the overseas sale of Hyundai LNG Shipping. This decision temporarily halts HMM’s strategic re-entry into the liquefied natural gas transport business, a segment it previously aimed to rejoin.

Market Challenges and Acquisition Dynamics

HMM concluded the current gas shipping market outlook isn’t favorable. The company had previously sought to re-acquire Hyundai LNG Shipping, which originated from its former LNG division. However, after HMM withdrew from the bidding process, IMM Private Equity and IMM Investment proceeded to sell 100% equity in Hyundai LNG Shipping to Frontier Resources, an affiliate of Indonesia’s Sinar Mas Group. This transaction fundamentally altered the competitive landscape HMM was considering for its return to gas transport.

Given these developments, HMM’s immediate strategic focus remains on its existing core maritime operations. While a return to the LNG shipping market may be considered in the distant future, current global freight conditions and the new ownership of Hyundai LNG Shipping dictate a delay. Industry experts will closely watch HMM’s future decisions.