South Korean liner companies Sinokor Merchant Marine and Heung-A Shipping have decided to merge their container shipping services by the end of the year before joining forces with Hyundai Merchant Marine (HMM).
The duo will ink a corresponding agreement in April when a joint office will also be established. The integration is expected to be completed by the end of 2019, the country’s Ministry of Oceans and Fisheries (MOF) said in a statement.
Sinokor and Heung-A Shipping together account for 34 percent of Asia’s total fleet capacity excluding HMM and SM Line.
Last year, HMM agreed to become a strategic partner to Sinokor and Heung-A by creating an HMM+K2 consortium.
As explained, the plan is to enhance synergy effects in the container shipping sector through the collaboration between the integrated company, which focuses on Intra-Asia, and HMM, which has a central position in long-distance ocean routes.
In the second half of 2017, South Korean container carriers joined forces to form a cooperation body named Korea Shipping Partnership aimed at strengthening the country’s shipping industry following the collapse of Hanjin Shipping. The fourteen national carriers launched a cooperation council to overcome the crisis in the industry and seek new business opportunities.
The council removed three routes and withdrew eleven ships, among other restructuring measures.
World Maritime News Staff