While the vessel market has reached its bottom due to the pandemic, Hoa Phat has taken advantage of the current low prices to purchase the two vessels. These vessels can transport different types of materials, such as: iron, steel, cement, clinker, agricultural products,…
The Group’s strategy of developing their own fleet comes from the huge demand for iron ore, coal, limestone and scraps from both domestic and international suppliers. Operating their own means of transportation will be of great assistance in optimizing the costs, increasing revenues and operating profits for the Group.
Hoa Phat Shipping JSC – a subsidiary of Hoa Phat Group, is currently in charge of renting vessels for all orders purchased in FOB and sold in CFR terms. They also provide services for other companies. Especially, owning a vessel fleet will help Hoa Phat reduce the risks from dramatically increasing ocean freights due to high demand, and equipment shortage, which have been a painstaking issue for many manufacturers.
Mr. Doan Quang Thinh, Director of Hoa Phat Shipping JSC, shared that the vessel operating activities will be flexible, based on the market conditions. The company also plans to purchase more vessels to support the Dung Quat II project, which will probably boost the demand for machineries and materials by two or even three times compared with the current figures.
Translated by: Dandelion