Controversy on Hyundai Joining 2M Alliance
The world’s largest shipping alliance 2M partners - Maersk Line and Mediterranean Shipping Co (MSC) - have been quick to offer shippers an alternate service on the transpacific trade in the wake of Hanjin Shipping’s collapse.
The Partners are all set to fill the gaps created by Korean owner’s receivership.
However, there is controversy over legal force of the contract in which Hyundai Merchant Marine Co. (HMM) signed to join 2M, reports Business Korea.
It has been found that HMM signed a memorandum of understanding (MOU) with Maersk Line and MSC in July to join the 2M alliance, not a typical contract that other companies sign to join an alliance.
So, the MOU has less legal binding force than the contract. HMM is said that the company signed the MOU because it was not sure to carry out the self-help plan.
An official from HMM said, “We had an urgent situation at that time so we had no choice but to accept the MOU suggested by Maersk and MSC.”
Since the MOU signed by HMM has less legal force than the agreement recently signed with Maersk to form a shipping alliance, it is expected to cause controversy.
Currently, HMM is establishing a legal basis with 2M. A senior official from HMM said, “We are in talks with 2M to sign a formal contract between October and December.”
Moreover, there is a possibility that China rejects the plan to form the shipping alliance by 2M and HMM. On the ground of anti-monopoly law, the Ministry of Commerce of China denied permission to create the P3 alliance consisting of Maersk, MSC and CMA-CGM in 2014. This is why Maersk and MSC formed the 2M without CMA-CGM.
When HMM joins the alliance with its 60 vessels, the 2M will have a total of 1,176 ships. Then, the alliance will have more ships than the Ocean Alliance with 1,108 vessels joined by Chinese large shipping firm Cosco.
