21st August 2019
AS a result of joining vessel-sharing group THE Alliance through to March 2030, Hyundai Merchant Marine (HMM) has announced that it will terminate its standalone Asia-North Europe container shipping services.
The South Korean shipping line sent cargo owners a notice to inform them of the cessation of the Asia Europe Express route which was launched 16 months ago, according to sources, reported Pulse, South Korea.
HMM becomes the fourth member of THE Alliance, joining Germany's Hapag-Lloyd, Japan's ONE and Taiwan's Yang Ming Marine Transport Corp.
HMM operated fifteen 4,600 TEU vessels on the AEX loop. The carrier lost money on its standalone route owing to stiff competition and weak demand in Europe, with earnings declining by 20 per cent compared to the previous year to US$676 per TEU even during the peak summer season.
Membership of THE Alliance is expected to attract new cargo owners as it has more ports of call than the AEX route, with additional stops at Antwerp in Belgium, Le Havre in France and London Gateway in the UK beyond Rotterdam in the Netherlands, Hamburg in Germany and Southampton in the UK on the AEX loop.