From Monday, Sinokor and Heung-A, South Korea’s fourth and fifth largest liners respectively, will merge their container services ahead of a full liner merger in October.
The deal was first announced 13 months ago, and does not involve the non-liner parts of both companies.
Combined the new company will become among the top 20 largest liners in the world and one of the largest on the intra-Asia trades.
Ever since flagship Hanjin Shipping went bankrupt the Korean government has been fostering greater consolidation within the nation’s hard pressed shipping sector. Further mergers are likely. The majority of Korean lines are already operating together on an intra-Asian alliance.