Following an announcement that Hyundai Merchant Marine (HMM) will not be included in the latest alliance formation between Hapag-Lloyd and a number of Asian carriers, HMM has stated that it will be joining up with the other lines once its financial situation improves, according to JOC.com.
HMM said in a statement: “HMM is certain that entering THE Alliance is only a matter of time, and will surely take place once the company’s continued efforts to stabilise its business ends. HMM’s entrance into THE Alliance is only being postponed as there have been several media reports since the beginning of this year about the possibility that HMM might be under court receivership.
“The current members of THE Alliance are going to determine HMM’s participation once HMM’s business is normalised.”
PTI previously reported that THE Alliance agreement had been confirmed while combining 3.5 million TEU of capacity and the initial term of the cooperation will last for five years.
However, while the latest alliance may make individual carriers more competitive, there could still be issues regarding how the alliances will correct many of the industry’s challenges.
— Port Technology Int (@PortTechnology) May 16, 2016
HMM’s inclusion in the new alliance was reported to be in the pipeline, providing that it could resolve its business endeavours, since the stability of the alliance rests on the strength of its members.