The South Korean shipping company Hyundai Merchant Marine (HMM) signed a memorandum of understanding with two linear carriers to create a consortium for the organization of transport in the intra-Asian trade. The business partners of the Hyundai Merchant Marine are Heung-A Shipping and Sinokor Merchant Marine. The three companies, forming HMM + K2 consortium, are going next month to sign the main contract, while the vessel sharing agreement is scheduled to begin in March this year. The agreement provides for joint operations and vessel sharing of the companies for freight transportation in Japan, China, South-East and South-West Asia, as well as joint investment in port projects.
According to HMM, cooperation should strengthen the position of carriers in the market conditions of the crisis in the industry.
“The agreement will boost the competitiveness of HMM when dealing with large shippers by giving it full access to the intra-Asia networks of Heung-A and Sinokor, including routes between South Korea and major Asian markets such as Japan and China”, said the CEO of HMM, C.K. Yoo. “The consortium will result in cost savings and improvement in customer services for Heung-A and Sinokor and strengthen their weak points in tri-party services”, added he.
One in four containers that moves around the world is carried in the intra-Asia trade, which has more than 70 shipping lines and 10,000 port pairs.
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.