Posted On: 15-12-2016
A media reports that the Hyundai Merchant Marine (HMM) plans to take 5% of global market share by 2021 by means of various measures including its latest agreement to join the 2M network.HMM currently control 2.2% of global container capacity, said it intends to improve cost competitiveness by focusing on the Asia-US route and raising wet bulk carriers rather than dry bulk vessels.
HMM will also focus on raising revenues and operating profits, improving service quality in the next two to three years, said Yoo Chang-keun, HMM’s CEO. HMM signed an agreement with Maersk Line and Mediterranean Shipping Company (MSC) on December 11, 2016, to enter into a new strategic cooperation. The agreement allows a combination of slot exchanges and slot purchases between the three parties, as well as Maersk Line and MSC taking over a number of charters and operations of vessels currently chartered to HMM.
The company said that if HMM’s financial health and liquidity status improves after the period of three years, the 10-year membership in the alliance will also be available on the agreement.
Members of the alliance have been in discussions with the Korean carrier on HMM joining the 2M vessel sharing agreement (2M VSA) since July 2016.HMM was looking to join the 2M alliance after its membership in the G6 alliance expires in 2017.
The move is made amid the current weak demand in the container shipping industry, as part of HMM’s debt restructuring plan.
HMM and MSC jointly placed a bid earlier in December to acquire a stake in a container terminal at California’s Port of Long Beach, which is also controlled by Hanjin.
Courtesy -World Maritime News