Members of the 2M Alliance – Maersk and MSC – reached a space-sharing deal with HMM, which they said is “outside the scope” of the 2M Alliance, but will involve HMM buying slots on 2M vessels and 2M partners purchasing slots with HMM on selected routes.
Ocean carriers Maersk Line, Mediterranean Shipping Co. (MSC) and Hyundai Merchant Marine (HMM) said in press releases Sunday they had agreed to “a new strategic cooperation” with each other.
The deal includes a combination of slot exchanges and slot purchases between the liner carriers.
Maersk and MSC said the agreement with HMM is “outside the scope” of the 2M Alliance vessel-sharing agreement, but will involve HMM purchasing slots on 2M vessels, while the 2M partners will purchase slots with HMM on selected routes.
In addition, Maersk and MSC will be “taking over a number of charters and operations of vessels currently chartered to HMM,” Maersk said.
With regard to the charters, “Maersk Line will take over a handful of HMM vessels in the 10,000 to 13,000-TEU range,” a Maersk spokesman said. He added, “HMM will not operate vessels in 2M as part of this agreement.”
Maersk said of HMM, “They are not a party to the 2M VSA and thus have no vessels in our network. They buy slots on our and MSC’s vessels. We will also buy slots on some of their services, their vessels. But those are obviously not part of the 2M network, and customers will know that their cargo – and have to agree – that their cargo is loaded on a HMM vessel. “
According to industry analyst Alphaliner, HMM currently owns 22 ships with 165,080 TEUs of capacity and charters 44 ships with 290,779 TEUs of capacity.
Maersk and MSC entered into the 10-year 2M Alliance in January 2015 to share space on each other’s ships on the transpacific, transatlantic, and Asia-Europe trades.
MSC said that like the 2M agreement between Maersk and itself, the cooperation with HMM will cover “key east-west trades,” but will only be a three-year deal starting in April 2017. The cooperation is subject to regulatory approval.
The initial three-year term is shorter than the general period of alliance contracts. “A long-term contract may prevent us from growing into a global carrier under limited circumstances, including restriction of new vessel orders,” HMM said.
HMM also said that through the 2M network, it will gain a wide range of services.
In addition, HMM emphasized the benefits to Korea, saying how it will fulfill the nation’s expectations by enhancing competitiveness.
Korea’s Yonhap News Agency reported that HMM said it is targeting a 5 percent share in the global shipping market by 2021 while striving to increase its profitability.
HMM is currently a member of the G6 Alliance with APL, Hapag-Lloyd, MOL, NYK and OOCL.
HMM said it “has specified that the basic slot allocation (BSA) agreed with Maersk and MSC offers a participation of HMM to the new advanced network of 20 percent approximately, regarding that which HMM stops in the G6 Alliance.”
“We are pleased to have agreed terms with Hyundai and Maersk Line in a new strategic cooperation,” MSC Senior Vice President Caroline Becquart said. “This cooperation allows MSC to enhance its market-leading network, providing new transport opportunities for our customers.”
Maersk Chief Operating Officer Søren Toft said the deal “will enable us to enhance our 2M network and presence in the important transpacific trade. We look forward to leveraging these new opportunities to the benefit of our customers.”
Although Maersk and MSC chose in their press releases to emphasize the cooperation with HMM was “outside the scope” of their alliance, HMM said the deal “is definitely one of alliance types, as we adopt operation methods which other alliances also adopt and it has binding force for FMC (Federal Maritime Commission) filing.”
The deal’s official title is the “2M-H Strategic Cooperation.”
HMM said that under the agreement, it will have three instead of two transpacific westbound services.
Hayes Howard, chief executive officer of BlueWater Reporting, said in an American Shipper commentary last month that the agreement with HMM may bring Maersk and MSC increased access to key South Korean manufacturers.
HMM forms space-sharing agreement with Maersk, MSC
