The post-Hanjin evolution of South Korea’s shipping industry took another step forward last month with the formation of the K-Alliance.
Comprising HMM, SM Line, Pan Ocean and recently merged Sinokor Merchant Marine and Heung-A Line, the alliance will strengthen the carriers’ competitiveness in South-east Asia, according to Korea’s ministry of oceans and fisheries (MOF).
It said the alliance represented about 40% of Korea’s annual container volumes of 480,000 teu with the region, adding that this is a market share that’s under pressure due to the “aggressive expansion” of international players.
Launching in the second quarter, the code-sharing agreement between the carriers will help reduce costs and increase quality of service, the MOF added, while the alliance members will also be offered preferential interest rates for new vessel orders.
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Source: The Load Star