Hyundai Merchant Marine plans to join 2M Alliance, which is headed by the Danish Maersk Line. The second largest container carrier of South Korea has intention to join the transport alliance and currently is in advanced negotiation in this direction. The company confirmed the rumors about plans and negotiation for joining 2M Alliance, but not yet revealing more details. Hyundai Merchant Marine needs of restructuring and improvement, as well as getting higher market share on Asia-Europe routes. With joining the world’s largest alliance, the South Korean shipowner will succeed to improve profitability per TEU, as well as increase the handled containers.
In recent years, the financial position of Hyundai Merchant Marine is getting worse. The creditors, primarily Korean Development Bank, demanded from the company’s business management to make restructuring and reform, which can improve profitability. Under the agreement, half of the assets of Hyundai Merchant Marine plans to exchange for repayment of debt. The remaining part of the debt the company intends to close by 2022.
In addition, the carrier has agreed terms with the owners of the freight transport vessels that are supposed to allow him to save over the next two years some 477 million USD. Now Hyundai Merchant Marine debt is estimated at 4.6 billion USD at low liquidity.
Hyundai Merchant Marine is a South Korean integrated logistics and containerized freight transport company, with more than 50 sea routes, over 100 ports of call and operating about 138 vessels. The company provides worldwide global service networks, diverse logistics facilities, leading IT shipping related systems, a professional highly trained staff, and continual effort to provide premiere transportation services.