Freight News, Sea

HHM signs deal to join 2M shipping alliance

[ July 15, 2016   //   ]

In the ever evolving world of steamship alliances, Hyundai Merchant Marine Co Ltd (HMM) reported on July 14 that it has signed a preliminary deal to join the 2M Vessel Sharing Agreement (2M VSA), a leading container shipping alliance comprised of the world’s largest container carriers: Maersk Line and Mediterranean Shipping Co (MSC).

By accessing 2M VSA network, HMM will be able to strengthen its service offering and achieve improved cost competitiveness. The 2M carriers will benefit from a reinforced service competency in Asia and improved network cover in the trans-pacific area.

With the announcement, HMM has successfully completed all conditions set out in the voluntary agreement with creditors from March 2016 and in accordance with the completion of such preconditions, the planned debt-for-equity swap by creditors will be executed as planned. Upon completion of said debt-for-equity swap, the financial structure of HMM will be significantly improved and puts HMM in sound position to meet future challenges.

A HMM spokesperson said, “Based on the company’s sound financial structure, HMM will put its utmost efforts into improving our service offering to clients and to continue increasing operational competency in the second half of this year to continue improving profitability of our company” the person stressed.

The joint service would take effect in April 2017.