: HMM chief

Restoring trust more important than joining 2M

Hyundai Merchant Marine CEO Yoo Chang-keun has sought to allay any disappointment arising from the company’s failure to become a full member of the 2M alliance, saying that it is more important to restore its customers’ trust.

News ID: 71008

Date: 20 December 2016 - 15:29

According to MANA, On 11 December, the 2M, comprising Maersk Line and Mediterranean Shipping Company, announced that instead of full membership for HMM, the latter would enter a three-year “strategic cooperation” agreement with them,involving slot swap agreements.

Since HMM’s largest domestic rival Hanjin Shipping went into receivership on 1 September, HMM has gained market share in the Asia-US trade each month, according to PIERS, a product of JOC.com. In August, HMM was ranked 14th, and its standing rose to 10th in October, helped by the company’s deployment of vessels to alleviate the logistical crisis resulting from Hanjin Shipping’s predicament.

Yoo said: “There is a perception that foreign carriers have grabbed Hanjin Shipping’s market share, but the fact that our company had a remarkable performance in the first month after Hanjin Shipping’s bankruptcy should be seen as a sign of improved trust from shippers.”

The HMM CEO also said that his company would order five container ships and three to five VLCCs in 2017.