In International Shipping News 14/09/2016
As Hanjin Shipping went into court receivership before the reorganization of global shipping alliances in April 2017, a lot of attention is being paid to the court receivership’s impact on the future of the alliances.
According to the shipping industry on September 12, two shipping companies of 2M –- Maersk of Denmark and MSC of Switzerland –- will put replacement vessels into three of Hanjin Shipping’s four exclusive routes to the Americas on September 15.
Earlier on September 8, Maersk decided to put six 4000TEU vessels into the Asia-America line which links Yantian and Shanghai of China China, Busan of Korea and Los Angeles of the US beginning on September 15. During the same period, MSC will run six vessels in the Asia-Canada line. This means that Hanjin Shipping routes were turned over to foreign shipping companies only two weeks after Hanjin Shipping was put under court receivership.
The two shipping firms are expected to have some impacts on the future of the shipping industry as the two belong to the 2M, the number one shipping alliance in the world. Some specialists say that the Hanjin Shipping Incident is highly likely to become unexpected variables at a time when an MOU has not led to a legally binding contract even after two months passed.
“Hanjin Shipping was a hurdle when the 2M signed an MOU with Hyudai Merchant Marine (HMM),” said a shipping policy specialist who declined to be named. “But now, the Korean government put at the end of its tether due to the great logistics disturbance is asking more vessels of foreign shipping firms to enter ports in Korea.”
“The 2M may think that the value of HMM has decreased as conditions are being created to let the 2M expand its base without partnering with a Korean shipping company,” he emphasized.
A “chicken game” is expected to become fiercer for the time being. The Alliance which Hanjin Shipping and Hapag-Lloyd took the lead in forming will lose some of its market share before its inauguration in April. In addition, the 2M is showing a move to take a void left by Hanjin Shipping. The 2M is six to ten times bigger than Hanjin Shipping and HM combined. Therefore, shipping companies will intensify fare discount competition in order to expand their market shares.
Source: BusinessKorea
