Sponsored By

HMM joins 2M alliance of Maersk Line and MSC

South Korea’s Hyundai Merchant Marine has confirmed that it will join the 2M container alliance currently comprising of Maersk Line and Mediterranean Shipping Company (MSC).

Lee Hong Liang, Asia Correspondent

July 14, 2016

1 Min Read
Kalyakan - stock.adobe.com

HMM announced on Thursday that it has signed a memorandum of understanding with its partners to enter into the vessel sharing agreement (VSA) for containerships.

The 2M container shipping alliance will commence in April 2017.

“By accessing 2M VSA network, HMM will be able to strengthen its service offering and achieve improved cost competitiveness. The 2M carriers will benefit from a reinforced service competency in Asia and improved network cover in the transpacific area,” HMM said in a statement.

MSC commented: "MSC is pleased to have signed this MOU, the addition of HMM to the 2M VSA will allow us to offer improved services on our transpacific trade."

HMM announced back in late-June that it was in talks to join 2M, amid the company’s troubles of implementing debt restructuring and overcoming its financial problems.

The Korean shipowner managed to strike a deal with owners of its chartered ships to cut charter rates by around 20% for the next three-and-a-half years, allowing it to avert a court-led restructuring process. HMM bondholders also agreed to swap around half of their debts for equity interests in the company, with the remaining half of the debts to be paid back after five years.

And earlier in mid-May, HMM had expressed interest to join THE Alliance, where compatriot Hanjin Shipping is one of the six members.

It is yet unclear if the name 2M will be changed to reflect the addition of HMM.

Read more about:

MSC

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like