[Yonhap News Photo]
South Korea's top financial regulator denied a newspaper report Thursday that the world's largest container-shipping alliance has decided not to allow Hyundai Merchant Marine Co. to join amid customer backlash.
Yim Jong-yong, chairman of the Financial Services Commission, said negotiations were "still under way" between Hyundai Merchant and the 2M alliance which handles 28 percent of the world's sea container cargo.
Hyundai Merchant has tried to join the 2M alliance that helps a cargo carrier to save costs by sharing ships and networks, since Hanjin Shipping filed for court receivership on August 3.
"I believe negotiations will be completed at around December 10," Yim told reporters, referring to a Wall Street Journal report.
A senior executive with the 2M alliance, which consists of Maersk Line and Mediterranean Shipping Co., said customers balked at the inclusion of a Korean carrier after the August collapse of Hanjin Shipping, the US daily said.
Maersk Line is the world's biggest container line by capacity. Switzerland-based Mediterranean Shipping ranks as No. 2.
In a November note to clients, Maersk Line said that rather than Hyundai Merchant becoming a 2M alliance member, the parties are looking "at other cooperation possibilities" including taking over Hyundai Merchant's chartered vessels and deploying them into the 2M network, it said.
"We reckon that at this point going to bed with Hyundai could shake customer confidence so we are looking for looser forms of cooperation," the unnamed executive was quoted as saying.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
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