News / HMM and SM Line exchange slots on transpacific routes to boost sales

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HMM and its compatriot, SM Line, are collaborating on long-haul lanes for the first time.

Both have filed an application to the US Federal Maritime Commission to each take slots of 300 teu on each other’s Asia-US west coast services.

SM Line will join other THE Alliance members taking slots on HMM’s Pacific South Express (PSX) service, while HMM will take slots on SM’s China Pacific Express (CPX).

Calling at Shanghai, Gwangyang, Busan, Los Angeles, Oakland, Busan, Gwangyang, Incheon and Shanghai, the PSX now has a seven-week turnaround, using six ships of 8,600 to 10,000 teu. A seventh, the new 13,800 teu HMM Emerald, will join the service later this month.

SM Line’s CPX calls at Qingdao, Shanghai, Ningbo, Busan, Long Beach, Portland, Busan, Gwangyang, and Qingdao, using six 6,655 teu sister ships with a six-week turnaround.

HMM’s spokesperson told The Loadstar that the slot exchange is expected to start in June, adding: “We’re planning the cooperation to improve HMM’s sales.”

Last month, HMM CEO Kim Kyung-bae said he would be open to working with other South Korean container carriers, interpreted as a possible cooperation with SM Line, the only other domestic box line running ocean-going services.

However, with capacity of just 68,500 teu, its fleet is insufficient to compensate for Hapag-Lloyd’s absence from THEA next February, leaving the members with just 2.5m teu, the smallest alliance – although ONE and HMM have outlined fleet expansion plans.

According to the FMC application, the slot exchange agreement on the PSX and CPX services will continue until 30 April 2025, with no automatic renewal.

Part of the Samra Midas group, SM Line was incorporated in 2016 to take over the remaining business of Hanjin Shipping, which ceased operations was declared bankrupt in February 2017.

Attempts by SM Line to work with HMM on the transpacific lane did not materialise then, according to Alphaliner. However, they did cooperate on intra-Asia services.