South Korean shipping firm Hyundai Merchant Marine said on Monday in a joint announcement with the Ministry of Oceans and Fisheries that it will be joining THE Alliance, one of the world’s top three shipping conferences, as a full member in April next year.
Hyundai Merchant Marine has become the fourth member of THE Alliance, a shipping conference led by Hapag-Lloyd of Germany, ONE of Japan, and Yang Ming of Taiwan. By acquiring a membership, the South Korean shipping company will be able to offer stable services for the next 10 years until the membership expires in March 2030. Thanks to its joining the alliance, Hyundai Merchant Marine will be able to improve cost structure and diversified shipping routes. With the joining of Hyundai Merchant Marine, THE Alliance can enjoy a 28 percent share of the sea routes in the Americas and Europe.
This is the third time that Hyundai Merchant Marine has become a full member of a shipping conference following New World Alliance and G6 Alliance. Affected by the Hanjin Shipping bankruptcy, Hyundai Merchant Marine established a strategic partnership with 2M Alliance in April 2017. The partnership with 2M Alliance will expire in March next year.
Hyundai Merchant Marine won a major shipbuilding contract in September 2018, paving the way for joining one of the top three shipping conferences. It eventually joined THE Alliance, which offered the best conditions.
The shipping industry expects that Hyundai Merchant Marine will be able to earn its trust back in the global market and will see its operating profit increase by a large margin after the second half of next year, thanks to the membership it has earned.
Ae-Jin Ju email@example.com