Hyundai Merchant Marine fails to join ‘3rd shipping alliance’

Hyundai Merchant Marine fails to join ‘3rd shipping alliance’. May. 14, 2016 07:24. by 김성규기자 sunggyu@donga.com.

Hanjin Shipping has agreed to form a "third shipping alliance" with shipping companies that have not joined the two major shipping alliances (2M Alliance, Ocean Alliance). Hyundai Merchant Marine, in contrast, has been excluded from the alliance.

Hanjin Shipping announced on Friday, “We agreed to form ‘THE Alliance’ of six companies with Hapag-Lloyd of Germany, NYK, MOL, K Line of Japan, and Yang Ming of Taiwan.” The six shipping companies plan to operate from April 1 next year joint services that are focused on routes linking the East and the West, including Asia-Europe and Asia-North America.

Shipping alliances are essential to shipping companies’ operation, and Hanjin Shipping is expected to overcome a major crisis in its ongoing efforts to normalize business.

Hyundai Merchant Marine has become the only company among the seven candidate firms to form a third shipping alliance, which is thus facing a crisis in survival. However, if Hyundai can improve its financial status prior to the official launch of the youngest alliance, the company may have a chance to join the alliance belatedly.

Hyundai Marine's creditors judge that THE Alliance’s decision constitutes "shelving for now" of the company’s membership, and decided to continuously provide financial assistance.