K Alliance with HMM, Sinokor, SM Line, Pan Ocean and Heung-A Line Established

On September 1, the K Alliance was formed by five South Korean liner companies to start co-cabin cooperation on intra-Asia routes. The members of the K Alliance also stated that they plan to transship cargo from Asia to the United States and Europe.It is reported that the members of the K Alliance include HMM, Sinokor, SM Line, Pan Ocean and Heung-A Line.

At present, the shipping capacity of Korean liner companies in the regional route market in Asia is about 200,000 TEU, and it is expected to increase to 250,000 TEU by 2025.

In December 2020, in accordance with the requirements of the Ministry of Ocean Affairs and Fisheries (MOF) of South Korea, the above five South Korean liner companies signed a sharing agreement to form the K Alliance.

The establishment of the alliance is mainly due to the large-scale expansion of the capacity of liner companies in other countries, which makes the market share of South Korean liner companies face challenges.

As Southeast Asia is becoming a new global manufacturing base, especially in countries such as Vietnam, there is a huge potential transportation demand. According to the agreement at the time, the K Alliance plans to jointly provide route services in Southeast Asia from the second quarter of 2021.

In December 2020, five South Korean liner companies signed an agreement 5688 through video conference
The Ministry of Maritime Affairs and Fisheries of South Korea previously stated that this is the first attempt by the South Korean shipping industry to form an alliance in order to gain scale advantages. It aims to save costs for liner companies by deploying more environmentally-friendly modern ships, and joint use of port facilities and containers.

News source according to Chengdu Pudding Mechatronic Co. CPMC, the department also emphasized that joining the K Alliance is voluntary and not mandatory. At the same time, more Korean liner companies are welcome to join at any time and can negotiate with existing member companies.At present, the shipping capacity of Korean liner companies in the Asian regional route market is about 200,000 TEU, but with the increase in new shipbuilding orders, it is expected that this number will increase to 250,000 TEU by 2025.

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