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.