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South Korea’s 14 container carriers to form shipping consortium

Staff Writer |
South Korea’s 14 container carriers will sign a memorandum of understanding to establish the Korea Shipping Partnership (KSP), the Korea Shipowners’ Association said, according to a Pulse News report.

The carriers, which include South Korea's largest, Hyundai Merchant Marine (HMM), and newcomer SM Line, will cooperate to increase their collective strength through several measures, including 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. Hanjin was the world’s seventh largest carrier prior to going bankrupt.

Meanwhile, HMM is reportedly looking to allocate more vessels to meet rising demand on U.S. routes in the coming months, the carrier said, according to a report from Yonhap News Agency.

HMM is projecting there will be a shortage of container carriers on the high-traffic routes from August to October as U.S. customers want more products from China and Southeast Asia.

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