The Korea Shipowners Association (KSA) and other logistics media outlets are reporting that details have been released for a new consortium comprising all 14 South Korean liner and feeder operators.
The consortium’s goal is to focus on intra-Asia trades, and is to be tentatively called the Korea Shipping Partnership. The 14 companies are scheduled to sign a memorandum of understanding on August 8th. The consortium members include Hyundai Merchant Marine (HMM), SM Line Corporation, Heung-A Shipping, Sinokor Merchant Marine, CK Line, Korea Marine Transport Co., Ltd (KMTC), Pan Ocean, Pan-Continental Shipping, Namsung Shipping, and Dongjin Shipping.
The trigger for this consortium was Hanjin Shipping Lines’ bankruptcy in February 2017 that has had reverberating effects throughout the industry. To avoid another such incident, these companies will cooperate to improve their competitiveness by sharing slots, rationalizing and jointly managing routes, and co-managing overseas terminal assets. Once the consortium agreement is officially realized in January 2018, the member companies will terminate their individual intra-Asia routes and consolidate services with one another.
KSA vice-chairman said, “For the first time in our country’s history, all liner and feeder operators are joining hands. We plan to work together to grow and to restore our image, both domestically and internationally.”