Maersk Line, the senior member of the world’s largest container-shipping alliance, has said it is no longer considering Hyundai Merchant Marine for membership in the group, dealing a major blow to the troubled Korean shipping company.
The so-called 2M Alliance—made up of Maersk and Mediterranean Shipping Co.—moves a third of all seaborne cargo, and membership would have guaranteed HMM a steady income during one of the industry’s worst down-cycles, as well as reducing its operating expenses through the sharing of ships, networks and port calls.
On Friday in Seoul, HMM shares plunged by as much as 12% before closing down 6%. A HMM spokesman said talks were still under way and that the company still expected to be regarded as a member or partner of the alliance.
