Hyundai Merchant Marine Join 2M Alliance

South Korean shipping company Hyundai Merchant Marine said on Thursday that it had signed a preliminary deal to join a 2M vessel-sharing alliance of Maersk Line and Mediterranean Shipping Co (MSC), the world's two largest container shippers.

The deal with the 2M carriers, which would take effect in April 2017, would enable the South Korean firm to strengthen its service offering and achieve improved cost competitiveness, the company said in a statement. The 2M alliance controls about one-third of the Asia-Europe trade route.

"The 2M carriers will benefit from a reinforced service competency in Asia and improved network cover in the trans-pacific area," the company said.

Joining the alliance was one of the preconditions set out in the debt-restructuring agreement made between heavily-indebted Hyundai Merchant Marine and its creditors.

"In accordance with the completion of such preconditions, the planned debt-for-equity swap by creditors will be executed as planned," Hyundai Merchant Marine said.

Hyundai Merchant Marine operates 116 vessels. It was left out of “THE Alliance” which was formed earlier this year by six Asian and European operators: Hapag-Lloyd, Nippon Yusen Kaisha (NYK), Kawasaki Kisen Kaisha ("K"-Line), Mitsui OSK Line (MOL), Hanjin Shipping and Yang Ming Marine Transport.