HMM to team up with global No. 1 MSC to boost competitiveness

[Courtesy of HMM Co.]

South Korean shipping company HMM Co. announced on Monday that it will reorganize its current shipping alliance with Japanese carrier Ocean Network Express (ONE) and Taiwan’s Yang Ming Marine Transportation (Yang Ming), under a new cooperative framework called the Premier Alliance.

The restructuring comes in response to the upcoming departure of German shipping giant Hapag-Lloyd from the group in February 2025.

To fill the void left by Hapag-Lloyd, HMM will partner with MSC, the world’s largest shipping company, to share container space on key routes between Asia and Europe.

The Premier Alliance will consist of three main carriers—HMM, ONE, and Yang Ming—and will operate for a five-year period starting in February 2025.

The alliance will focus on major shipping lanes, including Asia to the U.S. West Coast, Asia to the U.S. East Coast, Asia to the Mediterranean, Asia to Europe, and Asia to the Middle East.

HMM and MSC have also agreed to collaborate on nine routes between Asia, Northern Europe, and the Mediterranean.

This vessel-sharing partnership with MSC will last for four years, starting in February 2025, and aims to strengthen their service on the vital Asia-Europe trade lane.

The restructuring and MSC partnership were prompted by the upcoming exit of Hapag-Lloyd, the world’s fifth-largest shipping company, from The Alliance.

Hapag-Lloyd’s departure, scheduled for February, raised concerns about the future of the group, as the German carrier holds the largest capacity within The Alliance, with a fleet totaling 2.24 million TEU (twenty-foot equivalent units).

The loss of Hapag-Lloyd threatened to diminish key benefits such as shared use of ships and terminals, especially on European routes, where the German carrier had a strong presence.

However, with the formation of the Premier Alliance and the new partnership with MSC, HMM is confident that it can mitigate concerns about losing competitive strength in the European market, while maintaining its existing partnerships with ONE and Yang Ming.