South Korea’s Hyundai Merchant Marine Co. (HMM) struggling to replace bankrupt cargo liner Hanjin Shipping Co. that used to be the country’s largest and world’s seventh major has partnered up with smaller local rivals to form a shipping alliance “HMM+K2.”
The move from HMM comes amid stalled negotiations to get on the world’s largest shipping alliance 2M.
Long-haul service provider HMM on Tuesday signed a memorandum of understanding on a code-sharing pact with Sinokor Merchant Marine Co. specializing in Korea-China route and Heung-a Shipping Co. with strength in Japan, said the company on Tuesday. They will ink the final contract that would be valid for two years and later extendable.
The three members will first start by sharing freight spaces by purchasing each other’s lots and expand cooperation to use one another’s fleet.
The three companies will gradually increase their collaborative work level by making joint infrastructure investment and sharing facilities, said Lee Sang-jik, head of container division at HMM.
The Original Posted By Kim Jung-hwan/Maeil Business News Korea