The last few weeks have not been kind to Hyundai Merchant Marine (HMM). One of the many carriers struggling to find a niche after the Hanjin bankruptcy and Japan 3 restructuring brought the rot in the box carriers out into the sunlight, one wonders where HMM fits in.

1. What's The Future Bringing
For HMM?

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5. The last few weeks have not
been kind to Hyundai Merchant
Marine (HMM). One of the many
carriers struggling to find a niche
after the Hanjin bankruptcy and
Japan 3 restructuring brought
the rot in the box carriers out into
the sunlight, one wonders where
HMM fits in.

6. Prior to Hanjin's bankruptcy,
HMM was promoting it's
transpacific routes as a feeder
system for the 2m; however when
Hanjin collapsed, Maersk and
MSC quickly filled the gap and
their financial stability served to
attract hanjin's worried shippers.

7. Thus it seems there
is perhaps no need
to bring HMM into
the 2m, with Maersk
announcing soon
after the hanjin
debacle they saw no
need to buy existing
routes or ships
except on a
case-by-case basis
on terms favorable
to Maersk.

8. The parties are therefore discussing the
possibility of hmm partnering with the 2m
network through a slot exchange and purchase
agreement.
- Maersk

9. However, nothing is closed yet and talks are still ongoing with
sources and media reporting that a conclusion to the cooperation
will be concluded in a couple of weeks.
Maersk's goal is simple, as they explained last week; their interest
is in “...The possibility of Maersk line taking over charters and
operations of vessels currently chartered to hmm with the aim of
deploying them in the 2m network.
Fair enough; Maersk has the financial strength to cherry-pick
what they need, and on terms favorable to them. Their clout was
made even more pronounced after yesterday's hamburg süd
acquisition announcement.

10. Another Bankruptcy In
The Midst?

11. But might this result in a second Korean shipping company
bankruptcy? One of the key conditions of its financial
restructuring negotiations with korean development bank and
other creditors was that hmm needed to become a full member of
the 2m alliance (Maersk and MSC).
It appears instead that at best, HMM might only sign a slot
exchange agreement with the 2m; thus jeopardizing their
restructuring possibilities.
But HMM is not standing still; last week they announced the
purchase of hanjin's transshipment terminal in algeciras. They
want to be the sole owner of total terminal international (tti),
which has a capacity of 1.86 million teu's annually.

12. HMM Not Giving Up The Ocean
Freight Fight

13. HMM also has a 20%
stake in the newly
opened Rotterdam
world gateway
container terminal,
and operates the
California united
terminal in Los
Angeles, the
washington united
terminal in tacoma,
wa and the Kaohsiung
Hyundai terminal in
Taiwan.

14. HMM has previously released plans to expand
on these three sites, and last week announced
expansion and building plans for algeciras.

15. Last week the dry bulk carrier bought Hanjin’s transpacific assets
for $31.4million, giving them seven international subsidiaries, five
panamax vessels, and logistics operations the the uswc, vietnam,
and china. With the three alliances controlling 90% of transpacific
capacity, perhaps a hmm-korea line announcement might be
forthcoming. We don’t know; just saying.
Previously they announced an operating loss of $452m in the first
nine months of this year, while reported a net profit of $206m
during the same period (due to to asset sales, not cargo; hmm
carried 7% less, down to 2.1m teus)

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