South Korea-based shipping line Hyundai Merchant Marine (HMM) has signed a memorandum of understanding (MOU) with 2M carriers to become a member of 2M Vessel Sharing Agreement (2M VSA).
The MOU signed between the two entities is a binding agreement.
Upon finalisation of negotiations and approval procedures, HMM will be able to provide joint service under the new deal from April next year.
2M is a major container shipping alliance that includes Maersk Line (ML) and Mediterranean Shipping Company (MSC).
A HMM spokesperson said: “Based on the company’s sound financial structure, HMM will put its utmost efforts into improving our service offering to clients and to continue increasing operational competency in the second half of this year to continue improving profitability of our company.”
With the access to 2M VSA network, HMM will be able to not only boost its service offerings but also achieve improved cost competitiveness.
The 2M carriers will benefit by a service competency in Asia and improved network cover in the trans-pacific area.
With this announcement, HMM has completed all conditions set out in the voluntary agreement with creditors from March 2016.
In line with the completion of these preconditions, the planned debt-for-equity swap by creditors will be executed.
Established in 1976, HMM currently has a fleet of 64 vessels.
The company operates in more than 60 sea routes and over 100 ports across the globe.