Hyundai Merchant Marine does not receive full membership in 2M Alliance

Hyundai Merchant MarineHyundai Merchant Marine (HMM) concluded strategic cooperation agreement with Maersk Line and Mediterranean Shipping Company (MSC), but not in the format of full membership in the 2M Alliance. The partnership agreement, signed initially for three years, provides for the exchange of slots and slots redemption partners with HMM ships. Also part of the ships chartered by the HMM, will be deployed to routes of Maersk Line and MSC. According to the strategic cooperation agreement, Hyundai Merchant Marine (HMM) does not be receive full membership in the alliance between the two leaders, but the South Korean carrier will have access to the network of 2M Alliance.

Hyundai Merchant Marine has signed a memorandum of understanding with 2M Alliance in July 2016. However, in late November, Maersk said that the parties have revised the original agreement and consider other forms of cooperation.

The access of Hyundai Merchant Marine in 2M Alliance was necessary to strengthen the position of the alliance on the Transpacific traffic direction.

The experts believe that this was the result of a court decision in Seoul November 14, according to which Korea Line has become the winner of the tender for the right to purchase the trans-Pacific operations of the bankrupt Korean line Hanjin. The lot included five container vessels, trans-Pacific routes and seven offices Hanjin.

It is noted that access of the Hyundai Merchant Marine to 2M Alliance was necessary to strengthen the position of the alliance on the Transpacific traffic direction. According to the officials, these assets would have almost doubled the capacity on HMM Transpacific trades. Without them HMM could add an alliance in this segment of the market, only 2% of its capacity.