South Korean container carrier Hyundai Merchant Marine (HMM) has finalized an agreement to form a consortium with its compatriots Heung-A Shipping and Sinokor Merchant Marine, according to Yonhap News Agency.
On January 3 the parties entered into a Memorandum of Understanding (MOU) to join forces in the HMM + K2 consortium, scheduled to start operating from March 1.
HMM earlier informed that the new consortium with the two Korea Intra Asia trade carriers will cover Japan, China and South East/West Asia trades.
The parties, opted for the move in an effort to “acquire competitiveness against mega shippers,” also agreed to jointly develop new shipping lines to other countries starting in May.
The consortium, which includes vessel sharing, slot exchange and slot purchase, plans to develop cooperation levels to include joint investment in port infrastructure and share container equipment for the medium and long term.
The deal will be effective for two years, after which it will be automatically renewed for successive two year terms.