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Friday, July 15, 2016

Hyundai Joining 2M Alliance

By Mark Edward Nero

Hyundai Merchant Marine (HMM) announced July 14 that it has signed an agreement with the 2M Vessel Sharing Agreement (2M VSA) for providing joint service in the trans-pacific area beginning in April 2017.

The announcement comes following agreements with bondholders to adjust debt and shipowners to adjust charter-hire. The agreement is contingent upon finalizing negotiations and approval procedures in each country.

The 2M is a leading container shipping alliance comprised of the world’s two largest container carriers, Maersk Line (ML) and Mediterranean Shipping Co. (MSC). HMM is South Korea’s second-largest ocean carrier.

The agreement signed between HMM and the 2M carriers is binding in regards to HMM’s entry to the 2M VSA. By accessing 2M VSA network, HMM has said it would be able to strengthen its service offering and improve cost competitiveness.

Likewise, the 2M carriers say they would benefit from a reinforced service competency in Asia and improved network cover in the trans-pacific area.

“Based on the company’s sound financial structure, HMM will put its utmost efforts into improving our service offering to clients and to continue increasing operational competency in the second half of this year to continue improving profitability of our company” Hyundai Merchant Marine said in a prepared statement.