South Korea-based cargo shipping companies are set to form a new alliance with the aim of improving their collective strength, following the bankruptcy of national flag carrier Hanjin Shipping last year.
The shipping consortium will be known as the Korea Shipping Partnership (KSP) and is set to comprise all of South Korea’s 14 container lines, including Hyundai Merchant Marine (HMM).
The Korea Shipowners’ Association has stated that a memorandum of understanding (MoU) will be signed between the companies, reported Pulse.
KSP is expected to undertake several measures to improve shipping operations across South Korea such as increasing the companies' shared cargo capacity, the addition of new shipping routes and facilitating the joint management of international terminals, reported Splash247.com.
The consortium is expected to finalise its operational guidelines by the end of this year and begin operation by January.
Korea Shipowners’ Association will be responsible for handling the secretariat works of KSP.
Hanjin Shipping filed for bankruptcy protection on 30 August last year.