South Korea’s container shipping lines are clubbing together to form a domestic alliance.
All 14 container shipping lines, reportedly including the largest, Hyundai Merchant Marine (HMM), and also new entrant SM Line, will sign a memorandum of understanding next week to create Korea Shipping Partnership, according to South Korea media reports.
It is reported that they will co-operate under the agreement to boost their strength by increasing shared cargo capacity, managing new shipping routes and co-managing terminals.
The new partnership will work on operational guidelines this year, with the aim being to launch officially in January next year. Korea Shipowners Association will handle the secretariat.
This news comes almost 12 months after South Korea’s major carrier Hanjin declared bankruptcy.
Some of the country’s carriers have already formed partnerships to strengthen themselves – in January this year HMM struck an MOU with intra-Asia trade carriers Heung-A Shipping and Sinokor Merchant Marine to form a ‘HMM + K2 consortium’.