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  • South Korean Shipping Companies to Form Partnership

South Korean Shipping Companies to Form Partnership

South Korean Shipping Companies to Form Partnership

South Korea’s 14 container shipping companies are expected to sign an MOU on Tuesday to establish the Korea Shipping Partnership (KSP).

The move is expected to ensure the nation's companies stay competitive in the wake of Hanjin Shipping's collapse last year.

The partership will include Hyundai Merchant Marine (HMM) and will see the companies share cargo capacity, add new routes and jointly manage overseas terminals. 

Other companies involved in the partnership include Sinokor Merchant Marine, Korea Marine Transport and Heung-A Shipping. HMM had already agreed to form an alliance with Sinokor Merchant Marine and Heung-A Shipping at the beginning of the year. Sinokor Merchant Marine specializes in shipments between South Korea and China, and Heung-A Shipping focuses on shipments to and from Japan.

KSP operations are expected to begin in January next year and will involve administrative support from the Korea Shipowners’ Association (KSA).

Local media reports indicate that HMM is looking to allocate more vessels to meet rising demand on U.S. routes this year. The company expects a shortage of container carriers on the high-traffic routes from August to October.

HMM agreed to a strategic cooperation with 2M Alliance members Maersk and MSC in December last year.

The new partnership follows a similar deal amongst Japanese shipping companies. In July, Kawasaki Kisen Kaisha (K-Line), Mitsui O.S.K. (MOL) and Nippon Yusen Kabushiki Kaisha (NYK) formally established a joint holding company for their container business alliance. The new company, named Ocean Network Express, includes terminal operation businesses outside Japan.


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