HMM Reaches Strategic Cooperation Agreement with Maersk Line and MSC

HMM has reached an agreement for strategic cooperation with Maersk Line and MSC.

Hyundai Merchant Marine Co., Ltd. (HMM) Monday announced that it has reached an agreement for strategic cooperation with the 2M alliance members, Maersk Line and Mediterranean Shipping Company S.A. (MSC), which will see the three parties cooperate on slot exchanges and slot purchases.

"Maersk and MSC offers a participation of HMM to the new advanced Network of 20 percent approximately regarding that which HMM stops in the G6 alliance," said HMM.

Known officially as the "2M+H Strategic Cooperation," the agreement is slated to take effect in April 2017, subject to regulatory approvals.

"This agreement is the best result putting emphasis on practical benefits when we concern our fleets, financial status, and profitability which are at a disadvantage in negotiation with 2M," explained HMM.

Further, the company notes that the deal is a type of alliance as it will "adopt operation methods which other alliances also adopt and it has binding force for FMC filing."

HMM says it has agreed to the new arrangement for a period of three years, adding that a longer period may prevent the carrier's growth.

Under the agreement, HMM says it will increase its transpacific westbound service from what it had under its G6 alliance membership.

"With this strategy cooperation agreement, HMM acquires a wide range of services and stability improvement of profitability through 2M network and fuel-efficient vessels," said HMM.

Last month, HMM's place in cooperation alongside the 2M carriers was thrown into question after Maersk Line and HMM issued seemingly conflicting reports on the parties' possible future together.