South Korea’s 14 container carriers will sign a memorandum of understanding next Tuesday to establish the Korea Shipping Partnership (KSP), the Korea Shipowners’ Association said, reported Pulse News.
The move is to help the nation better compete in the global container shipping industry in the wake of Hanjin
’s collapse, according to local media
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.
“Under the terms of the agreement, they will cooperate to improve their collective strength through various measures including increasing shared cargo capacity, adding new shipping routes and co-managing overseas terminals,” the report said.
The KSP will establish operational guidelines by the end of the year, and aims to launch full-fledged operations in January. The secretariat works will be handled by the Korea Shipowners’ Association (KSA).