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AAL, HMM launch Asia-Middle East multi-purpose service

The joint Far East – Middle East MPV Liner Service will operate on a bi-monthly rotation, connecting the Asian markets of China, Korea, Japan, Indonesia and Singapore with the Middle East via the Persian Gulf and Red Sea routes.

   Singapore-based global ocean transport company AAL Shipping and South Korean container line Hyundai Merchant Marine (HMM) are combining forces to create a multi-purpose service between Asia and the Middle East, they revealed Monday.
   The joint Far East – Middle East MPV Liner Service will operate on a bi-monthly rotation, deploying five multi-purpose vessels (MPV) – four 30,100 dwt 640-Class from HMM and one 31,000 dwt A-Class from AAL.      The new global cooperation will see both carriers expand their trade route coverage, sailings frequency and MPV fleet capacity, they said, as well as the expansion of HMM’s services portfolio and semi-liner services provided by AAL.
   “The service 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 and HMM announced in a joint statement. “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.”
   Both carriers are expected to remain independent and promote the expanded services under their own respective brands.
   “By pooling our resources with HMM, we can each offer more comprehensive service portfolios with improved frequency, capacity, coverage, and economies of scale for our customers,” AAL Chartering & Operations Director Namir Khanbabi explained. “There will be no collaboration on pricing and we will each pursue bookings under our own respective brands, with separate commercial teams and bills of lading.”
   The intention, Khanbabi said, is to expand the service to six vessels, with an additional A-Class vessel being added by 2019.
   “As more global projects become active in 2018 and multi-purpose cargo volumes rise – as has been widely forecasted – we aim to be in pole position to competitively service this demand, whatever the cargo and wherever the destination,” he said.
   HMM General Manager Seung-il Park said that customers can now take advantage of the new services that the cooperation with AAL brings, without seeing any change to either the team or the process by which they make their current bookings.
   “There are no immediate plans for a more expanded cooperation, but should there be meaningful opportunities to generate further value for our respective customers through an expanded collaboration, this will be thoroughly reviewed,” he added.