Korea's Hyundai Merchant Marine (HMM) has announced that it has formed an alliance with intra-Asia carriers Heung-A Shipping and Sinokor Merchant Marine to form a consortium to be called HMM + K2.

HMM + K2 become operational in March after the signing its formal contract next month. Services will cover Japan, China and south east as well as west Asia trades, with the agreement subject to automatic renewal for successive two-year terms.

"HMM will acquire competitiveness against mega shippers, as HMM will fully access Heung-A and Sinokor's intra-Asia networks, which focus on the Korea-Japan and Korea-China trades," said a company statement.

"This consortium will result in cost savings and improvement in customer services for Heung-A and Sinokor, which also strengthens their weak points in Tri-party services," it said.

HMM + K2 consortium will include a vessel sharing, slot exchange, and slot purchase agreements, as well as additional plans to bring in joint investment in port infrastructure and sharing of container equipment in the medium and long term.