SM Line, SM Group's flagship subsidiary, will be jointly operating the U.S. West Coast route with 2M, the world's largest shipping alliance.
SM Line announced on Feb. 13 that it will start joint operation, hold exchanges and ship exchanges with 2M (Maersk and MSC) on the Asia-America route. Joint operation is a strategy in which shipping companies jointly operate ships and holds on a particular route to cut down on operating costs and maximize efficiency.
“This cooperation is significant in that 2M recognized the stability and market influence that SM Line has on U.S. routes,” a company official said. “We expect to reduce the operation cost on the North American route, our main route.”
The number of ports used by SM Line will also increase. The joint operation will add Oakland of the United States to its ports of call. Oakland is expected to help SM Line strengthen its frozen cargo transport business as shipping high value-added specialty cargoes such as oranges are very active in Oakland.