Dive Brief:
- Mediterranean Shipping Company (MSC) and Hyundai Merchant Marine (HMM) tendered a joint bid for Hanjin's 54% stake in Total Terminals International (TTI) at the Ports of Long Beach and Los Angeles, American Shipper reported last week.
- MSC already owns 46% of TTI; by joining with HMM, ships from both carriers will gain access to the larger TTI terminal in Long Beach.
- Logistics uncertainties abound, however, as relocation issues may cause chaos not only for carriers, but also for truckers and others who will need to track the changes in piers and react accordingly, according to the Journal of Commerce.
Dive Insight:
HMM, Maersk and MSC have long shown interest in Hanjin's TTI stake, but the combined bid reaffirms a sense of collaboration between the companies which may soon be partners in the 2M alliance.
For a brief moment, all seemed lost for HMM after an investor note by Maersk suggested the Korean shipping line had failed to join the world's two largest carriers in an alliance. The bad news piled onto HMM's failure to acquire Hanjin's assets, as bulk carrier Korea Line offered a better price.
However, Korea Line's refusal to immediately buy Hanjins' five vessels and the TTI stake left the door open for HMM's acquisitions. Korea Line's court-issued right to buy ends January 5, but MSC would still have the right to buyout Korea Line's stake.
As such, the recently announced joint bid ensures HMM will have access and indicate the two shipping lines are still aiming to work together. Reports indicate representatives from MSC, HMM and Maersk Line will meet December 6 in Denmark to share a draft of a 2M+HMM deal.
