The London-based shipping research and consulting firm said that as currently planned, “The Alliance” will be “at a size disadvantage,” making up 24 percent of East-West capacity.
The decision by Korea’s largest container carrier, Hanjin Shipping, to seek protection from creditors in bankruptcy court, has created questions about the three restructured shipping alliances that large container carriers are scheduled to join next spring, an article from Drewry’s most recent Container Insight Weekly noted.
Hanjin had planned to join “THE Alliance,” a vessel sharing agreement that was also to include Hapag-Lloyd (and its recently acquisition UASC), Yang Ming and the three Japanese carriers NYK, MOL and “K” Line.
For a while, it looked like THE Alliance would also include Korea’s second largest container carrier, Hyundai Merchant Marine (HMM). But in July, HMM announced a memorandum of understanding to join the 2M Alliance of Maersk and Mediterranean Shipping Co.
As currently planned, Drewry said The Alliance will be “at a size disadvantage,” making up 24 percent of East-West capacity, while the 2M plus Hyundai will comprise 31 percent; and the Ocean Alliance of CMA CGM/APL, COSCO China Shipping, OOCL and Evergreen Line will make up 34 percent.
In the wake of Hanjin’s financial problems, HMM was directed by Korea’s Financial Services Commission to form a task force to review possible acquisition of Hanjin’s healthy assets.
Korea’s Yonhap News Agency said on Sunday that HMM “has begun work to acquire key assets of the troubled Hanjin Shipping Co,” citing unnamed industry sources and creditors. HMM said it was being assisted by A.T. Kearney, IBM and a local consulting firm, Yonhap reported.
Drewry said, “HMM would very much be the junior partner in the 2M.” Drewry added, “but even so, the addition of too much Hanjin capacity could pose competition issues as the existing lines are already at the upper limits of what is acceptable to regulators.”
Maersk and MSC formed the 2M alliance after Chinese regulators objected in 2014 to a proposal by Maersk, MSC and CMA CGM to form the P3 Alliance between the three carriers, because the Chinese thought the P3 would control too much capacity.
Drewry: How Hanjin’s insolvency will impact ‘THE Alliance’
