HMM Confirms Alliance with 2M Carriers

HMM says it has signed a MoU with Maersk Line and MSC, which will see HMM join in a 2M Vessel Sharing Agreement, effective April 2017.

Hyundai Merchant Marine (HMM) Thursday announced that it has signed a Memorandum of Understanding (MoU) with the 2M carriers, Maersk Line and Mediterranean Shipping Company S.A. (MSC), which will see HMM join in a 2M Vessel Sharing Agreement (2M VSA), effective April 2017.

"By accessing 2M VSA network, HMM will be able to strengthen its service offering and achieve improved cost competitiveness. The 2M carriers will benefit from a reinforced service competency in Asia and improved network cover in the trans-pacific area," explained HMM.

The news comes alongside HMM's announcement that it has has successfully completed all conditions set out in the March 2016 voluntary agreement with creditors, having finalised agreements with its bond-holders in order to adjust its debt and agreements with shipowners to adjust charter-hire.

HMM says that, in accordance with the completion of the preconditions, its planned debt-for-equity swap by creditors can now be carried out as planned, after which the financial structure of HMM will be "significantly improved," putting the company in a "sound position to meet future challenges."

A spokesperson for HMM, commenting on the developments, said: "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."

As Ship & Bunker reported in June, following news that HMM was looking to join the 2M Alliance, rumours began to swirl of a possible acquisition of HMM by Maersk Line.

Earlier in June, it was reported that the South Korean government said it would consider a merger of two of the countries' largest shipping companies, HMM and Hanjin Shipping Co Ltd (Hanjin) as soon as the two companies' management has been normalised.