South Korea's shipping industry is entering a phase of more intense competition in the intra-Asian market. The country's largest container carrier, HMM, is expanding its operations in this segment, which was previously dominated by local feeder operators.

**Rising Demand for Container Shipping in Southeast Asia**

The most notable changes are occurring in Thailand, where increased Chinese investment is driving the creation of new manufacturing and logistics networks. This is fueling demand for container shipping between China, Thailand, South Korea, Vietnam, and other countries in the region. Thailand is becoming a key manufacturing base for Chinese companies pursuing a "China Plus One" strategy. Instead of concentrating production solely in China, businesses are opening new facilities in Southeast Asia to diversify supply chains and gain access to ASEAN markets.

**HMM’s Strategy and Fleet Expansion**

HMM previously specialized in long-haul routes between Asia, North America, and Europe. Now, the company is strengthening its presence in the intra-Asian market, directly competing with Korean carriers operating on short and medium regional routes. HMM already operates services between South Korea and Thailand’s largest container port, Laem Chabang, via Japan and Vietnam, as well as between China and Thailand. This marks a shift toward building a robust regional network, rather than focusing solely on long-haul routes.

The company plans to acquire 22 container ships with capacities ranging from 1,800 to 2,800 TEU starting in 2028. These vessels are intended to expand its intra-Asian network. Recently, two new container ships with a capacity of 1,956 TEU each were purchased from the Chinese owner Baozhou Shipping. The vessels, HMM Milestone and HMM Harmony, will be delivered from Zhejiang Tenglong Shipyard in October and January 2027 and will operate on intra-Asian routes.

**Market Competition and the Position of Korean Companies**

The intra-Asian market has traditionally been important for South Korea’s mid-sized shipping companies. KMTC Line, Sinokor Merchant Marine, Dongjin Shipping, Heung-A Line, Namsung Shipping, Pan Ocean, SM Line, and CK Line have subsidiaries or agency networks in Thailand and operate services through the ports of Laem Chabang and Bangkok. These carriers have developed competitive advantages through dense regional networks connecting South Korea’s main ports with China, Vietnam, Thailand, and other Asian markets. Unlike long-haul shipping, where scale and large vessels are crucial, in the intra-Asian market, key factors include sailing frequency, regional connectivity, and the ability to handle diverse cargo flows.

**Changes in Cargo Flows and Infrastructure Development**

The cargo base in the intra-Asian region is rapidly evolving. Strengthening economic ties between China and Southeast Asia, supported by the opening of the Pinlu Canal, is creating new two-way cargo flows. Components and raw materials are shipped from China to Thailand, while finished products made in Thailand are exported to ASEAN markets and worldwide.

Laem Chabang, Thailand’s main container port, increased its throughput by 7% in 2025 compared to the previous year, reaching 10.15 million TEU. In response, the Thai government plans to expand the port to boost annual capacity from 11 to 18 million TEU.