In a move that is expected to ensure the South Korea's container shipping companies stay competitive in the wake of Hanjin Shipping's collapse, 14 container shipping companies will sign a MOU to establish the Korea Shipping Partnership (KSP). KSP operations are expected to begin in January 2018 and will involve administrative support from the Korea Shipowners’ Association (KSA).
The partnership will include Hyundai Merchant Marine (HMM), Sinokor Merchant Marine, Korea Marine Transport, and Heung-A Shipping (to name a few), and will see the companies share cargo capacity, add new routes, and jointly manage overseas terminals.
The new partnership follows a similar deal formed between Japanese shipping companies. In July of 2017, Kawasaki Kisen Kaisha (K-Line), Mitsui O.S.K. (MOL), and Nippon Yusen Kabushiki Kaisha (NYK) formally established a joint holding company for their container business alliance. The new company, named Ocean Network Express, includes terminal operation businesses outside Japan.