Hyundai Merchant Marine (HMM) has declared that it intend to take 5% of the global market share by 2021. In an announcement on Monday (December 12) the company outlined its intentions to achieve this through various measures, including its latest deal to join 2M. Despite the fact that HMM won’t actually have full 2M membership.
Currently, HMM has a 2.2% stake in the global container market.
The Korean shipping company said it would concentrate on boosting cost competitiveness by primarily focusing on the Asia-US route, as well as raising wet bulk carriers rather than dry bulk carriers.
At Monday’s press conference HMM CEO Yoo Chang-keun said, “To become the final winner in global competition, the company will focus on raising revenues and operating profits, and improving service quality in the next two to three years.”
Chang Keun went on to say that “in the medium and long run, the company will become a shipper specialised in the US and Asia lines, based on its past experience of making up 5 to 6 percent of global market share.”
It has also emerged that the Korea Development Bank, who are HMM creditors, have promised to pump just over USD $250 million into the company.
Reflecting on the recent 2M news that will see a strategic sharing agreement for surplus capacity take place, Chang Keun said “Although some may see the negotiation result as insufficient depending on viewpoints, (I believe) it is the best decision to make, considering the current situation. The actual characteristics or the form of the latest deal is similar to other alliances”.
2M have claimed that if HMM’s financial prospects improve over the three year agreement, a full ten year membership may well be negotiable.