Hyundai Merchant Marine to join 2M Vessel Sharing Agreement
South Korea’s Hyundai Merchant Marine (HMM) has joined Maersk and Mediterranean Shipping Company’s (MSC) 2M Vessel Sharing Agreement.
As a key piece of the three companies’ long-term strategy, the vessel sharing agreement (VSA) runs for 10 years and covers all East-West trades. These trades have been characterised by overcapacity and low growth, creating a situation where carriers barely break even on costs and even lose money to provide the service.
Maersk and MSC struck the original agreement in January 2015, sharing 193 vessels on 22 strings, allowing both shipping lines to provide greater product options to customers at substantially lower operating cost.
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.”
HMM currently has a fleet of 64 vessels and will provide Maersk and MSC a bolstered presence in Asia and the trans-pacific region. The deal is expected to come into effect as of April next year following the signing of a memorandum of understanding.