The South Korean ocean carrier’s U.S. Premium Service that launched last May, which allows shippers to pay an extra 10-20 percent to get guaranteed space on ships and rapid discharge of their containers, has officially moved over 10,000 TEUs.
Hyundai Merchant Marine (HMM) said Thursday that it has moved over 10,000 TEUs of containers under its “U.S. Premium Service” where shippers pay extra in order to get guaranteed space on ships and rapid discharge of their containers.
The U.S. Premium Service was introduced last May, and HMM said it plans to increase annual handling volumes of the service from 20,000 TEUs to 50,000 TEUs in the near future.
Shippers pay a 10-20 percent fee for the service, which is refunded if HMM fails to perform.
Most users of the service are contract customers moving deadline sensitive commodities, such as electronics, garments or auto parts, an HMM spokeswoman explained.
“Customers are mostly interested in quick unloading, but during the peak season, space guarantee becomes spotlighted,” she added.
Since May, HMM has provided the U.S. Premium Service on its PS1, PS2, and PN2 routes, connecting Asia main ports with the U.S. West Coast, including Los Angeles and Tacoma.
“Customers can secure reliable cargo loading space even in the peak season and have priority to discharge their cargoes at the destination,” HMM said.
During times of high congestion, it can take two or three days to receive cargo at U.S. ports, the company said. With the U.S. Premium Service, “customers can receive cargoes instantly or within one day after discharging.”
HMM said it is improving its service quality through other initiatives.
In January, HMM launched an “Ultra Freezer” premium service, which transports goods at -60° C as opposed to the -35° C to -40° C temperature at which most containers moving frozen goods are set.
Last year, it also began offering customers real time temperature monitoring of their reefer cargo using “internet of things” technology.
Earlier this week, APL said it was expanding its Eagle GO Guaranteed Service, which promises equipment and vessel space. APL said it will increase the number of Asian ports where it offers the service from four to 29 ports on 22 transpacific services from Asia to the U.S.
HMM’s ‘U.S. Premium Service’ moves over 10,000 TEUs
