TTIA, HMM's self-operated terminal at the port of Algeciras, Spain, which the company uses as a hub for its Europe and Africa routes. [HMM]
TTIA, HMM's self-operated terminal at the port of Algeciras, Spain, which the company uses as a hub for its Europe and Africa routes. [HMM]

HMM is launching a new container service linking Spain and West Africa — the first application of its "hub-and-spoke" strategy, which connects the company's large-vessel deep-sea network with smaller feeder ships to improve route efficiency.

HMM said Tuesday it has deployed the first vessel on the new container service route, designated MA2.

MA2 is the first route to emerge from the hub-and-spoke strategy for the container division that HMM President Choi Won-hyuk has pursued since taking office. Under the model, large vessels carry cargo to central hub ports along long-haul deep-sea routes, while smaller feeder ships redistribute the cargo to surrounding ports.

Feeder vessels are mid-sized ships that connect smaller ports ultra-large container ships cannot call on directly.

The new route uses Algeciras, Spain, as its central hub and links major ports along the West African coast. HMM said the service will allow it to maintain the operational efficiency of its large vessels while offering shippers a broader range of origin and destination options.

Algeciras is a key port of call on HMM's deep-sea FIM (Far East–India–Mediterranean) route and is home to TTIA, a self-operated terminal, making it well suited as a hub for integrating deep-sea and feeder networks.

Five feeder vessels will be deployed on the service, with a round trip taking 35 days. Departing from Algeciras, the route calls at Tangier (Morocco), Dakar (Senegal), Tema (Ghana), Lekki (Nigeria) and Abidjan (Côte d'Ivoire).

Through the MA2 service, HMM will operate the congestion-prone West African port segment separately. The company said this will improve on-time performance for its ultra-large vessels and allow more flexible adjustment of feeder network port calls based on local port conditions.

Route map for HMM's new container service MA2, which connects major West African ports via the hub at Algeciras, Spain. [HMM]
Route map for HMM's new container service MA2, which connects major West African ports via the hub at Algeciras, Spain. [HMM]

In the shipping industry, designing deep-sea routes and regional feeder networks in tandem has become increasingly important as carriers respond to congestion at major ports and shifting cargo volumes by region. Profitability now depends less on simply adding capacity and more on how efficiently terminals, feeder ships and deep-sea fleets are connected.

Since President Choi took office in March last year, HMM has pursued network diversification to strengthen its container division's competitiveness — going beyond expanding its ultra-large fleet to link deep-sea and short-sea routes and deepen integration with its self-operated terminals.

The company has also moved quickly to build up its feeder fleet. From last year through this year, HMM secured a total of 27 feeder vessels through a mix of new orders — 22 newbuilds — as well as resales and second-hand purchases. Those vessels are to be deployed alongside the existing ultra-large fleet to improve operational efficiency and profitability.

"We plan to continuously expand hub-and-spoke services connecting large vessels and feeder ships at major global ports," an HMM official said. "We will continue our push to become a global carrier through fleet and network expansion and the acquisition of eco-friendly vessels."


kwater@heraldcorp.com