HMM, AAL Partner Up on New Multipurpose Service

Image Courtesy: HMM

South Korea-based shipping company Hyundai Merchant Marine (HMM) and Singapore’s multipurpose carrier AAL are entering a cooperation that will create a joint service for multipurpose vessels (MPVs).

As explained, the cooperation will see both companies expand their trade route coverage, sailings frequency and MPV fleet capacity.

HMM will deploy four 30,100 dwt MPVs in the Far East – Middle East MPV Liner Service and AAL one 31,000 dwt A-Class vessel, AAL said.

Both carriers will remain independent and promote these expanded services under their own respective brands.

The new service, with a 15 and 30-day sailing rotation, will connect the Asian markets of China, Korea, Japan, Indonesia and Singapore with the Middle East via the Persian Gulf and Red Sea routes.

AAL said that capacity and port coverage will be jointly coordinated, but each carrier will issue separate schedules to their customers, who’ll be able to book space on any vessel serving the trade.

“By pooling our resources with HMM, we can each offer more comprehensive service portfolios with improved frequency, capacity, coverage, and economies of scale,” Namir Khanbabi, Chartering & Operations Director of AAL, explained.

“The intention is to expand the service to six vessels, with an additional A-Class vessel by 2019,” he added.

HMM is also expanding its portfolio with a range of tramp solutions and semi-liner services – connecting the Americas, Europe, Middle East and Asia – operated by AAL. These services are powered by a fleet of MPV vessels that are served by AAL’s in-house operations and engineering teams.

“We’ve established a leading position with Korea’s dynamic energy and infrastructure industries, operating regular multipurpose sailings between Asia and the West. These same customers can now take advantage of the … new services that our cooperation with AAL will bring,” Seung-il Park, General Manager of HMM, commented.

“There are no immediate plans for a more expanded cooperation but, should there be meaningful opportunities to generate further value … through an expanded collaboration, this will be thoroughly reviewed,” Park further said.

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