HMM rejects SM Line's trans-Pacific pact offer
Hyundai Merchant Marine has turned down fellow South Korean carrier SM Line's offer to jointly operate on trans-Pacific services to the US East Coast.
SM Line, which was started after the collapse of Hanjin Shipping in 2016, said in December that it hoped to jointly operate services to the United States in 2018. That month SM Line management also indicated that it was preparing to start a second service to the US West Coast.
HMM received the formal cooperation request on January 9. A HMM spokesman told IHS Media: "We're not reviewing anything regarding SM Line. As HMM is not 100 per cent sure about SM Line's service reliability, an unconditional cooperation seems difficult, with many uncertainties. Cooperations, such as joint operations or slot exchanges, seem unfeasible for a while."
Co-founder and chief investment officer at investment bank SC Lowy, Soo Cheon Lee, said in an interview recently that SM Line would have to find partners on the trans-Pacific if it was to maintain its competitive edge.
"SM Line will need to find ways to increase its capacity and keep operating expenses down, and that is going to be the long-term challenge. That is going to be when they start looking for partners," he said.
The combined market share of SM Line and HMM for US imports from Asia in 2017 was 6.8 per cent, 0.7 points shy of Hanjin's market share in 2015, according to PIERS. HMM's 881,608 TEU last year made it the number 8 carrier on the trade, and SM Line's 187,781 TEU made it number 15. CMA CGM/APL is the top carrier on the trade with 14.8 per cent of the market, followed by Evergreen Line's 10.9 per cent and Cosco's 10.8 percent.
SM Line has 10 weekly services and an aggregate capacity of more than 100,000 TEU. Four of the services are intra-Asia, two are Asia-India as slot charterers, two are feeder services, one goes to the Middle East, and one sails from Asia to the US West Coast, calling the Port of Long Beach.
HMM is already making plans to cooperate with Israel's ZIM Line on US East Coast services, and has an ongoing collaboration with the 2M Alliance comprising Maersk Line and Mediterranean Shipping Company. That agreement includes slot exchanges on Asia-US West Coast runs and slot purchases for Asia to the US East Coast, northern Europe, and Mediterranean loops. HMM currently sends ships of 5,000 TEU from Asia to the US East Coast every week.
Singapore still world's 2nd largest container port, handling 33.7m TEU in 2017
Singapore container port handled 33.7 million TEU last year, an increase of 8.9 per cent on 2016, however, volumes were still marginally lower than the record year of 2014.
The Lion City retained its place as the world's second largest container port, following flat growth in 2016. "Singapore put up a strong performance in 2017. Our container throughput rose by 8.9 per cent to 33.7 million TEU, due to the pick-up in the global economy and PSA's efforts to anchor major shipping alliances here," said Lam Pin Min, Singapore's Senior Minister of State for Transport and Health.
Handling 33.7 million TEU in 2017 volumes were slightly below the record of 33.9 million TEU in 2014, Seatrade Maritime News of Colchester, UK reported.
Singapore is well behind the world's largest container port in volumes term - Shanghai - which according to local reports surpassed 40 million TEU in 2017.
Cargo tonnage handled by Singapore reached a record 626.2 million tonnes in 2017 up 5.5 per cent on the previous year, .
Singapore however retained its crown as the world's top bunkering port surpassing the 50 million tonnes mark for the first time with 50.6 million tonnes of bunkers sold in the port in 2017 up 4.2 per cent on the previous year.
Cosco receives 3rd 14,500 TEU vessel from China State Shipbuilding
COSCO Shipping Lines has taken delivery of a 14,500 TEU newbuild named the Cosco Shipping Alps. The ship was built by Hudong-Zhonghua Shipbuilding, part of China State Shipbuilding Corporation (CSSC).
The ship has a market value of US$87.09 million, according to VesselsValue, reported Daily Shipping Times.
The shipping line has now taken delivery of three 14,500 TEU containerships after its sister vessels, Cosso Shipping Himalayas and Cosco Shipping Kilimanjaro, were handed over to the carrier in July and December, respectively.
(Source:HKSG-GROUP)
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