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Conflicting reports on HMM joining the 2M Alliance leave everybody guessing

CONFUSION surrounds South Korea's Hyundai Merchant Marine joining the 2M Alliance of Maersk and Mediterranean Shipping Corporation (MSC) with the Danish shipping giant stating that the parties involved are now looking at "other cooperation possibilities".

On the other hand, HMM has maintained that it expects a "formal agreement either in the end of November or early December" regarding the vessel sharing partnership.

Maersk Line issued a statement that said, "Since July 2016, 2M has been in discussions with the Korean container shipping line Hyundai Merchant Marine (HMM) on HMM joining the 2M vessel sharing agreement (2M VSA). The parties have discussed the possibility of HMM joining 2M as an operating partner and now decided to look at other cooperation possibilities."

Maersk added, "The parties are therefore discussing the possibility of HMM partnering with the 2M network through a slot exchange and purchase agreement."

The announcement comes one week after the 2M Alliance partners announced the launching of a new transpacific loop between China and Long Beach in December. Maersk will dub it the TP3, while MSC will call it the Sequoia, American Shipper reported

Maersk said: "The partnership discussions are ongoing and include the possibility of Maersk Line taking over charters and operations of vessels currently chartered to HMM with the aim of deploying them in the 2M network. The discussions include how we can improve our products on the Pacific trade."

HMM, for its part, said in a statement to American Shipper that "HMM joining 2M is under discussion in details and the discussion is likely to be concluded shortly. We go over the specifics in various forms and plan to make a formal agreement either in the end of November or early December."

An HMM official told Korea's Yonhap News Agency, "We are still in negotiations (with 2M) to iron out differences. Our plan to complete the partnership talks by this month has not changed."

However, Maersk said: "Discussions are on-going and we do not wish to comment further until there is any substantial development."

The CEO of SeaIntelligence Consulting Lars Jensen, said the announcements seem to have caused "quite a bit of confusion."

"The way I read this one is that it is up in the air whether they are going to come in as a full alliance member," he said. "There has been no denial by Maersk that it is going to happen. Clearly, the negotiations are still going on.

"It may or may not be an alliance, but if it is not an alliance, at least they are talking vessel sharing agreement, which for most of the parties here, would fulfill the purpose," Mr Jensen added.