South Korea’s 14 container carriers to form shipping consortium
South Korea’s 14 container carriers will sign a memorandum of understanding to establish the Korea Shipping Partnership (KSP), the Korea Shipowners’ Association said. The carriers including Hyundai Merchant Marine (HMM), SM Line will cooperate to increase their collective strength through increasing shared cargo capacity, adding new shipping routes and co-managing overseas terminals.
The KSP will establish operational guidelines by the end of the year, and aims to launch full-fledged operations in January. The alliance is being formed in hopes of restoring the country’s shipping reputation after its then-largest carrier, Hanjin Shipping, went bankrupt last year. HMM is reportedly looking to allocate more vessels to meet rising demand on US routes in the coming months. HMM agreed to a strategic cooperation with 2M Alliance members Maersk and MSC back in December involving a combination of slot exchanges and slot purchases between the liner carriers, although Maersk and MSC made it clear the agreement with HMM was “outside the scope” of the 2M Alliance.