South Korean carrier Hyundai Merchant Marine (HMM) is looking to join the 2M Alliance, the major collaboration between Maersk and Mediterranean Shipping Company (MSC), in an effort to strengthen its global business network.
According to a statement, HMM’s CEO and President Jae-hoon Bae departed for London on April 22, 2019 as part a Europe-wide tour of major carriers and customers.
The tour will initially see Bae meet Ki-tack Lim, the Secretary-General of the International Maritime Organization (IMO) to share opinions and views on the upcoming 2020 environmental regulations on sulphur dioxide and CO2.
He will then visit Denmark and Switzerland to meet executives from Maersk and MSC, the two biggest carriers in the world by market share, to “consolidate the relationship”, which is currently under an agreement of strategic cooperation.
These talks, according to The Wall Street Journal, will be part of HMM’s attempts to formally join the 2M Alliance by 2020.
If HMM does join the 2M Alliance, it will be able to cut costs by sharing ships and cargo volumes and port calls.
It suffered US$1.6 billion in losses over the past three-and-a-half years and is reportedly relying heavily on government subsidies to stay afloat.
The alleged government assistance given to HMM and other areas of the South Korean shipping sector, such as shipbuilding, has led to formal complaints from Japan, as such interference is against WTO regulations.