South Korean carrier Hyundai Merchant Marine (HMM’s) chances of securing a membership with THE Alliance could be improved as a result of its plan to order mega-ships, according to JOC.com.
A letter about HMM said: “Thus, HMM could secure (ultra-large containerships), satisfying the government’s precondition for the shipping finance support, and strengthen our fleet’s competitiveness. HMM is certain that entering a new alliance is only a matter of time and will surely take place once the company’s continued effort to stabilise its business ends.”
PTI previously reported that HMM stated that it would not look to join THE Alliance until its financial situation has improved.
HMM previously said that its entrance into THE Alliance had only been postponed because it “might be under court receivership.”
This news followed HMM and fellow South Korean carrier Hanjin Shipping’s announcement that they wanted to form a survival alliance with other container shipping lines.
HMM is one of many carriers currently struggling with weak demand, low freight rates and overcapacity in the container market.
Matthew Gore of Holman Fenwick Willan recently spoke to PTI with regards to the main factors affecting the container market, with the SOLAS amendment and alliance consolidation being two of the main concerns in the industry.
It was recently reported that the three mega alliances currently in operation may correct industry challenges, however, Drewry notes that alliances are only as strong as their member carriers and should not be viewed as the ‘silver bullet’ in the industry.
Out of the global shipping carriers, Maersk leads with the highest fleet capacity in TEU.
— Port Technology Int (@PortTechnology) May 16, 2016