Korean conglomerate, SM Group, is aiming to be a top 20 container vessel operator by focusing on the Transpacific and intra-Asia routes. While many fear that the mighty Maersk will take over everything and claim world dominance, SM Group isn't scared easily. I admire their guts and for sure we do need more competition in the industry. I wonder if it will at all make a dent, however.

1. IS THE SM GROUP THE NEXT OCEAN
FREIGHT DISRUPTOR?

2. JOIN THE CONVERSATION
ON TWITTER
@XENETA_AS

3. ABOUT
XENETA
At Xeneta we believe there is an untapped
potential for everyone in the industry, to
systematically learn from our individual
and collective efforts. We hold true that "if
you cannot measure it, you cannot improve
it". That’s why we think actionable metrics
is the key to continuously evolve for every
business, and ultimately the entire industry.
Rethinking global logistics is the vision of
Xeneta.
With international experience from the
logistics industry, we have first-hand
knowledge of the challenges related to high
volatility and lack of transparency in the
ocean freight market. By combining
logistics background and information
technology expertise, we found the solution
WE ARE
TRANSFORMING
GLOBAL
LOGISTICS

4. ARE YOU PAYING THE
RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS
POTENTIAL IN REAL
TIME.
CONTACT US.

5. KOREAN CONGLOMERATE, SM
GROUP, IS AIMING TO BE A TOP
20 CONTAINER VESSEL
OPERATOR BY FOCUSING ON
THE TRANSPACIFIC AND
INTRA-ASIA ROUTES. WHILE
MANY FEAR THAT THE MIGHTY
MAERSK WILL TAKE OVER
EVERYTHING AND CLAIM
WORLD DOMINANCE, SM
GROUP ISN'T SCARED EASILY.

6. IS THERE ROOM FOR A NEW
ENTRANT INTO THE OCEAN FREIGHT
MARKET?

7. APPARENTLY SM GROUP BELIEVES SO WITH ITS NEWLEY
FORMED SM LINE CORPORATION AND SOURCE 21 VESSELS.
THE KOREAN CONGLOMERATE HAS ACQUIRED NUMEROUS
COMPANIES INCLUDING TK CHEMICAL AND WOOBANG IN 2008
AND VENTURED INTO THE OCEAN FREIGHT MARKET IN 2013
WITH THE ACQUISITION OF KOREA LINE, A DRY BULK AND
TANKER OPERATOR.

8. WHO IS SM GROUP?
SM

9. SAMRA MIDAS GROUP BEGAN AS A CONSTRUCTION FIRM IN
1988. OVER THE YEARS, IT DIVERSIFIED BY ADDING SHIPPING,
CHEMICAL MATERIALS, COSMETICS, AND AUTO PARTS
COMPANIES TO ITS PORTFOLIO RESULTING IN 20 SUBSIDIARIES
OPERATING UNDER THE SM GROUP UMBRELLA.
THE GROUP TYPICALLY PURCHASES DISTRESSED AND
BANKRUPTED COMPANIES. EARLIER IN 2016, IT PLANNED TO
ACQUIRE SPP SHIPBUILDING’S SHIPYARD FROM ITS
CREDITORS BUT FAILED IN ITS ATTEMPT.

10. JOIN US JANUARY 17TH FOR OUR
NEXT QUARTERLY WEBINAR AS WE
ANALYZE CONTAINER SHIPPING
PRICES FOR THE MAIN GLOBAL
ROUTES.
REGISTER NOW

11. AIMING FOR A MAJOR SPOT
ON THE TRANSPACIFIC ROUTE

12. SM GROUP IS ON ITS WAY
TO ACHIEVING A TOP 20
STATUS BY ACQUIRING
HANJIN SHIPPING’S
ASIA-U.S. ROUTE. BEFORE
ITS FALL FROM GRACE,
HANJIN WAS A TOP 10
CONTAINER LINE ON THIS
ROUTE.
WHILE IT MAY MAKE
SENSE TO PLACE THIS
ROUTE WITHIN KOREA
LINE’S OPERATION,
APPARENTLY, IT WILL BE
KEPT SEPARATE BY
CREATING A NEW
COMPANY CALLED SM
LINES.

13. SPLASH 24/7 NOTES SM
LINES WILL SOURCE 21
SHIPS CONSISTING OF
SOME OF HANJIN’S FLEET,
CHARTERS AND
PURCHASED SECONDHAND
VESSELS WITH PLANS TO
LAUNCH THE LINE AS
EARLY AS APRIL. IF NOT SM
LINES WILL HAVE A FLEET
OF ABOUT 110,000 SLOTS
AND WOULD REPLACE
IRAN’S IRISL AS THE
WORLD’S 20TH LARGEST
CONTAINER CARRIER,
ACCORDING TO THE
LATEST STATISTICS FROM
ALPHALINER.

14. LEARN HOW XENETA CAN HELP
YOU GET INSIGHT INTO YOUR
GLOBAL OCEAN FREIGHT PRICES.
REQUEST
DEMO NOW

15. INTRA-ASIA ROUTES ARE
ALSO AN OPTION

16. NOT ONLY WILL SM LINE BE FOCUSED ON THE TRANSPACIFIC
LANE, IT IS ALSO INTERESTED IN THE INTRA-ASIA ROUTES.
IT IS IN DISCUSSION TO JOIN THE NEWLY MINTED HMM+K2,
CONSISTING OF HYUNDAI MERCHANT MARINE (HMM),
HEUNG-A SHIPPING AND SINOKOR MERCHANT MARINE,
SCHEDULED TO BEGIN JOINT OPERATIONS IN MARCH.
DISCUSSIONS COULD BE A BIT CONTENTIOUS AS KOREA LINE
AND HMM EACH MADE BIDS FOR HANJIN ASSETS WITH KOREA
LINE WINNING OUT.

17. IN ADDITION, KOREA LINE REFUSED
TO THROW A LIFE LINE TO HMM AND
AS A RESULT, HMM IS NOW UNDER
KOREA DEVELOPMENT BANK.