South Korea to launch K-Alliance liner alliance

Five South Korean container shipping companies will team up on Southeast Asia services next year according to a request by the country’s Ministry of Oceans and Fisheries (MOF).

HMM, SM Line, Pan Ocean, Sinokor Merchant Marine and Heung-A Line will launch an alliance called K-Alliance by the second quarter of next year under a code-sharing arrangement recently signed by the companies.

Through the agreement, South Korea aims to reinforce cooperation between national liner companies and strengthen the competitiveness of the carriers in Southeast Asia where it believes to have growth potential.

According to MOF, South Korean container shipping companies have a combined market share of around 40% or about 190,000 teu capacity on the South Korea – Southeast Asia route but the market share has been declining due to the aggressive expansion of other global shipping companies.

Another six South Korean shipping companies might also join the alliance in the mid to long term, MOF added.

The alliance partners will also look to jointly order and deploy eco-friendly ships and use port facilities and containers.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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