Hyundai withdraws multiple vessels on G6 Asia-Europe loops

The struggling South Korean ocean carrier recently removed vessels from two services between Asia and North Europe, according to data from ocean carrier schedule and capacity database BlueWater Reporting.    On the heels of the G6 Alliance’s recent decision to suspend its transpacific Central China 1 (CCI) service for six weeks, which deployed six vessels operated by struggling South Korean ocean carrier Hyundai Merchant Marine (HMM), ocean carrier schedule and capacity database BlueWater Reporting illustrates how the carrier’s vessels are being removed from some of the alliance’s Asia-North Europe services.
   In addition to HMM, the G6 Alliance includes Hapag-Lloyd, Orient Overseas Container Line (OOCL), APL, Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK).
   The alliance currently operates four services that serve the Asia to North Europe trade, which include the LP1, LP4, LP5 and LP7.
   On the LP4, the Hyundai Pride was removed and replaced with the OOCL Egypt, leaving no remaining HMM vessels on this service, according to BlueWater Reporting.
   In addition, on the LP5, where six of the 11 ships on the service were previously provided by HMM, only three of the carrier’s vessels remain: the Hyundai Ambition, the Hyundai Dream and the Hyundai Smart. BlueWater Reporting noted how the LP5’s schedule shows these vessels staying on the service with the next sailings from the Port of Gwangyang in July and August.
   No HMM vessels operate on LP1 and LP7.
   Overall, out of the 46 vessels operating on G6 Alliance’s four Asia-North Europe loops, only three of the vessels are operated by HMM, according to BlueWater Reporting. 
   Dynamar noted this week the G6 Alliance’s LP6, which serves the Asia-North Europe trade, will remain suspended until further notice. Initially, the service was halted for the February-May period before being extended to early July. Dynamar said four of OOCL’s ships from the LP6 are being used to replace HMM’s tonnage on LP4 and LP5.
   “It is clear that the suspension aims to support rates,” Dynamar said.
   An HMM spokesman told American Shipper that since March 2016, G6 has been suspending Loop 6 routes by 1 cycle (11 weeks) in order to stabilize rates through reducing capacity.
   “As the market recovery is still slow, the suspension of Loop 6 was determined,” he said. “Ships affected by the suspension of Loop 6 will now be handled by cascading plan. The ships of G6 members, including HMM, previously under Loop 6 will now be withdrawn and deployed to other routes once the cascading plan is finalized,” he added.
   Meanwhile, HMM issued a statement saying that a court has approved a debt adjustment plan that was approved at a meeting of the company’s bondholders May 31 and June 1.
   South Korean news agency Yonhap reported that HMM said Tuesday it will raise more than 2.5 trillion won (U.S. $2.1 billion) by issuing 236 million new shares “to pay maturing debts and secure operating capital.”