Hyundai Glovis Achieves Record High 55% Sea Freight Sales Excluding Hyundai Motor and Kia

'Glovis Crown' docked at Bremerhaven Port, Germany

[Asia Economy Reporter Dongwoo Lee] Hyundai Glovis announced on the 29th that last year, in the automobile carrier (PCTC) business, the proportion of non-affiliated sales excluding Hyundai Motor and Kia reached 55%, marking an all-time high.

The proportion of non-affiliated sales in Hyundai Glovis's PCTC business has been increasing annually. It rose from 40% in 2016, 42% in 2017, and 44% in 2018 to 52% in 2019, marking the first time that non-affiliated sales exceeded affiliated sales. This figure is more than four times higher than the 12% non-affiliated sales ratio in 2010, when Hyundai Glovis officially entered the shipping business, over a span of 10 years.

Hyundai Glovis attributed the growth in non-affiliated sales to qualitative growth achieved by focusing on major shippers such as global automakers and heavy equipment manufacturers, leveraging strengths such as increased transportation efficiency.

Last year, Volkswagen Group entrusted Hyundai Glovis with a five-year long-term maritime transportation contract, which proved effective. According to the contract, Hyundai Glovis will exclusively transport the entire volume of exports from Europe to China for all passenger car brands within the Volkswagen Group, including Volkswagen, Audi, Porsche, and Bentley, for the next five years. This is the largest volume contract Hyundai Glovis has ever signed with a non-affiliated global automaker in the shipping sector.

Hyundai Glovis also maintains steady business relationships with global automakers such as Mercedes-Benz, BMW, GM, and Tesla. Additionally, it is increasing the proportion of non-affiliated sales in maritime transportation of finished vehicles through the transport of heavy equipment such as dump trucks and excavators.

Continuous Investment in Ships and Infrastructure... Ranked 2nd Worldwide in Fleet Size Last Year

Hyundai Glovis is strengthening continuous investments in ships and infrastructure to increase the proportion of non-affiliated sales. The number of car carriers, which was 22 vessels in 2010, increased to 86 vessels last year (31 owned vessels and 55 chartered vessels). This ranks as the second largest fleet worldwide based on 2020 fleet size.

While operating low-age vessels with high fuel efficiency, Hyundai Glovis introduced the world’s first ‘Post-Panamax’ car carrier capable of transporting about 7,300 vehicles at once, reducing transportation costs and improving efficiency.

To provide smooth service to shippers, Hyundai Glovis operates dedicated car carrier terminals in Pyeongtaek, Gyeonggi Province, and Gwangyang, Jeollanam-do, establishing an integrated logistics system connecting maritime and land transportation. In 2019, it opened a 640,000㎡ car export-import yard at the Port of Philadelphia on the U.S. East Coast, continuing investments to strengthen competitiveness in finished vehicle maritime transportation.

The company is expanding its business through joint ventures with global local shipping companies. In March 2019, Hyundai Glovis established ‘Stena Glovis,’ a joint venture with the Swedish shipping company ‘Stena Rederi’ in Europe, leveraging shipping performance and infrastructure to strengthen global finished vehicle sales.

This year, Hyundai Glovis plans to proactively secure return cargo to fill empty vessels after transporting automobiles. It is also increasing orders for heavy equipment used at overseas construction sites. Hyundai Glovis stated, "As the only Korean shipping company in the automobile carrier market, we will leap forward as a world-leading global logistics company."

This content was produced with the assistance of AI translation services.