Hyundai Merchant Marine to join 2M Vessel Sharing Agreement

By Tom Wadlow
South Koreas Hyundai Merchant Marine (HMM) has joined Maersk and Mediterranean Shipping Companys (MSC) 2M Vessel Sharing Agreement. As a key piece of t...

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. 

Supply Chain Digital's June issue is now live. 

Follow @SupplyChainD and @MrNLon on Twitter.

Supply Chain Digital is also on Facebook. 

Share

Featured Articles

Visa Europe's CPO Bornstein to speak at Supply Chain LIVE

Visa Europe CPO Alisa Bornstein will share insight at Procurement & Supply Chain London LIVE on the key role of procurement in times of recession

Digital twin technology is supply chain resilience boost

Mark Landry, Intelligent Industry Leader for Capgemini Americas, on how digital twin technology is helping to take supply chain resilience to next level

Andrew New–SCCL to speak at Procurement & Supply Chain LIVE

Andrew New, CEO of Supply Chain Coordination Limited (SCCL) for the NHS will be speaking at Procurement & Supply Chain LIVE LONDON

Supply chain global events, news and features round-up

Digital Supply Chain

Automation 'is helping supply chain serve customer needs'

Digital Supply Chain

No going back on e-commerce - FedEx Express AMEA CEO

Logistics