Instead of East Coast of NA

HMM plans to concentrate on European and Indian markets instead of putting ships directly to the American east coast routes.
HMM plans to concentrate on European and Indian markets instead of putting ships directly to the American east coast routes.

 

According to the maritime industry and Chosun Biz on March 26, Hyundai Merchant Marine (HMM) decided to stop negotiations for route services to the east coast of North America with Israeli shipping company ZIM, and accordingly there will be no national flag carrier to provide the services for a while. HMM had originally planned to put two vessels of 8500 TEU into the 'Z73 Route Service' operated for the east coast of the North America by JIM.

As HMM ceases to negotiate with JIM, there will no national flag carrier to open the service for the time being. SM Line, which proposed a cooperation to HMM for the route services, is not affordable to open additional routes as the company is in the process of opening the services for the west coast of North America in May. HMM, which had provided the east coast services through putting its owned vessels, has been operating the route services by borrowing from Danish Maersk and Swiss MSC since April of last year.

HMM plans to concentrate on European and Indian markets instead of putting ships directly to the American east coast routes. From April 8, it will launch an independent route connecting Busan, Europe, Rotterdam and Hamburg, with 10 vessels of 4600TEU class. So far, the company has been providing European services by renting some space of the vessels operated by Maersk and MSC.

The strategy of HMM is to secure the necessary shippers in advance for large-sized vessels to be put in the future while operating the independent route with the 4600TEU vessels. Currently getting supports from the South Korean government, HMM is preparing to order large ships with a capacity of 22,000 TEUs to meet the International Maritime Organization (IMO) environmental regulations by 2020. Hyundai Merchant Marine is considering a plan to put the new 22,000 TEU-class vessels in the European routes.  

Meanwhile, Hyundai Merchant Marine currently operates seven routes for India. The carrier is expected to provide its own route services through the rearrangement of India routes instead of cooperation with other shipping companies.

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