Automotive Purchasing and Supply Chain — 2024-10-04
Automotive Industry
Hyundai Glovis announced that it signed a MoU with BYD, China’s largest electric vehicle manufacturer, to establish a strategic collaboration for logistics and finished vehicle maritime transportation. According to the agreement, the two companies will review possible cooperation in global container logistics operations as well as joint use of car carriers (PCTC).
The two companies will explore possibilities of collaboration in the container forwarding business, utilising Hyundai Glovis’ global logistics infrastructure/network. Forwarding refers to a cargo transportation specialist taking responsibility for and handling the entire transportation process from departure to arrival of cargo. Last year alone, Hyundai Glovis handled more than 320,000 40-foot (12m) containers of automobile parts, batteries, steel, equipment/equipment, etc. overseas.
In the finished vehicle transportation sector, the companies will review collaboration by which they will be able to jointly utilise the ship space of car carriers currently owned by BYD. In addition, the possibility of maritime transport of BYD finished vehicle exports via Hyundai Glovis’ car carriers will also be reviewed in the mid to long term.
At the ‘2024 CEO Investor Day’ held in June, Hyundai Glovis announced that it would increase the non-affiliate sales ratio in the finished vehicle maritime transport sector to 50% over the next five years. The plan is to prioritise the transport of affiliated volumes but also increase sales growth by increasing non-affiliate customers. To this end, Glovis plans to expand its fleet from the current 90 vessels to 128 vessels by 2030.
Officials from both companies, including Kim Tae-woo, Head of the Hyundai Glovis Shipping Division (Executive Director), and Wang Junbao, Head of BYD’s Shipping Division (General Manager), attended the business agreement ceremony held at the BYD headquarters in Shenzhen, China.
A Hyundai Glovis official said, “Based on our competitiveness in finished vehicle transport, we plan to expand logistics cooperation with global finished vehicle manufacturers.”