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Dear Valued Customers
We would like to announce to you that Hanjin Shipping will commence a joint service from April 1st of 2017 forming ‘THE Alliance’ with 5 other carriers (Hapag-Lloyd, Nippon Yusen Kaisha, Mitsui O.S.K. Lines, “K”Line and Yang Ming), covering East-West trade lanes namely, Asia-Europe/Mediterranean/Middle East/Red Sea, Asia-North America and Transatlantic scope.
With the appearance of mega alliances, Hanjin Shipping has been talking with major carriers since 2013 regarding alliance alteration to review in multiple ways to prepare for the recent overall partnership changes amongst carriers. Followed by thorough discussion, six carriers have come to agreement, to participate and finally agree to strategic alliance through collaboration, and the contract duration is five years.
The new alliance formed amongst six carriers including Hanjin Shipping, is a joint partnership between the main carriers of two of the world’s current leading alliances,
CKHYE and G6. ‘THE Alliance’ will have a total container capacity of approximately 2.1 million TEUs (market share 23.6%) in the Asia-North America and the Asia-Europe trades, bringing it to be on par with the ‘2M’ Alliance and the ‘Ocean Alliance.’ Furthermore, once the acquisition of UASC by Hapag-Lloyd is finalized, the total capacity of ‘THE Alliance’ on the East-West trades will add up to 2.42 million TEUs (market share 27.1%).
Hanjin Shipping will take this opportunity to further lay the foundation for a full turnaround. Through joint deployment of vessels by the main carriers of Korea, Japan, Germany and Taiwan, Hanjin Shipping intends to create a more efficient cost structure, and also maximize synergy on service frequency, transit time and reliability, by sharing network and shipping infrastructure
Ultimately, ‘THE Alliance’ will be an important step for Hanjin Shipping to improve its financial structure and maintain trust with its customers by stabilizing its services. Hanjin Shipping will continue to do its utmost to realize stabilization of management.
Tai-Soo Suk
President & CEO
Hanjin Shipping Co., Ltd.
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