South Korean Shipping Companies to Form Partnership

South Korea’s 14 container shipping companies are expected to sign an MOU on Tuesday to establish the Korea Shipping Partnership (KSP). The partnership will see the companies share cargo capacity, add new routes and jointly manage overseas terminals. Operations are expected to begin in January next year and will involve administrative support from the Korea Shipowners’ Association (KSA).

Besides Hyundai Merchant Marine (HMM), other companies involved include Sinokor Merchant Marine, Korea Marine Transport and Heung-A Shipping. HMM had already agreed to form an alliance with Sinokor Merchant Marine, specializes in shipments between South Korea and China, and Heung-A Shipping, focuses on shipments to and from Japan, at the beginning of the year.

The new partnership follows a similar deal in July when Kawasaki Kisen Kaisha (K-Line), Mitsui O.S.K. (MOL) and Nippon Yusen Kabushiki Kaisha (NYK) established a joint holding company, Ocean Network Express, for their container business alliance which includes terminal operation businesses outside Japan.