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Hyundai Merchant Marine in talks to join 2M

Embattled Korean line Hyundai Merchant Marine is in negotiations with Maersk and MSC to join their alliance, 2M.

The news comes as a surprise given how HMM had previously repeatedly said it was looking to join the six-member new container grouping, THE Alliance. Local media in South Korea claim that Hanjin Shipping and K Line vetoed HMM joining THE Alliance.

Maersk Line’s COO, Søren Toft, confirmed to Splash: “We can confirm that we – 2M – are in discussions with the Korean container shipping line Hyundai Merchant Marine on the possibility of HMM joining the 2M vessel sharing agreement when their membership of the G6 alliance expires in 2017. We are positively reviewing the proposition. The inclusion of Hyundai Merchant Marine in 2M would for example provide us with extended coverage and a stronger product in the transpacific trade. It is early days. Therefore we do not wish to comment further before there are more substantial developments in the discussions.”

A spokesperson from HMM said, “The 2M carriers and HMM are ideal partners as we can work together in order to create a great synergy for the alliance by supplementing each company’s operation.”

 

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One container shipping consultant, speaking on condition of anonymity, reacted with surprise to the news.

“I cannot see why Maersk would wish to assist HMM, I had believed that their intention was to push them off the cliff, it might however be an interesting move from Maersk as a first step towards an acquisition,” he said.

Lars Jensen, ceo of SeaIntelligence Consulting, told Splash: “The magnitude of HMM relative to 2M means that it will not result in a major upheaval of the entire network – provided of course that the deal actually materialises.”

The news was welcomed by investors in Seoul with HMM, which is coming to the end of a painful restructuring, seeing its share price leap 30% to KRW15,400.

Sources have also told Splash that Hamburg Sud is in negotiations to join 2M, something that Maersk Line officials declined to comment about today, dismissing the German link as rumour and speculation.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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