After failing to gain full membership to any of the major shipping alliances, Hyundai Merchant Marine has announced intentions to team up with fellow Korean lines Heung-A and Sinokor Merchant Marine.
Heung-A is a respected company who have developed a strong network after 53 years in the shipping industry. The company boasts a fleet of 30 vessels. Sinokor Merchant Marine is also a significant player in the Asian shipping industry. The company was founded in 1989 and now currently services over 60 ports around the world.
A deal was made between the three companies after a Memorandum of Understanding was signed on January 3 2017. The consortium, which is set to officially begin operations in March, will focus on developing shipping lines to new countries, as well as vessel sharing and plans for port investments. The grouping is being referred to as HMM+K2, and is set to cover shipping in Japan, China and South East/West Asia trades.
This Korean shipping trio should work to create synergy and understanding, as well as saving overall costs and improving customer service through a combined network.
HMM have been making waves in recent months with much focus being placed on the Korean shipping line. Firstly, in December 2016 they announced their plans to achieve a 5% market share by 2021. Later that month, after attempts to fully join the 2M alliance were not fulfilled, CEO Yoo Chang-keun defiantly claimed that “2M was playing the media to differentiate itself from HMM.”
To some, this new Intra-Asia alliance may just seem like the latest move by HMM to recover from the membership knockbacks suffered after rejections from 2M and THE Alliance. Despite this, a ‘strategic alliance’ between HMM and the 2M network is set to begin in April 2017.