Friday, 13 May 2016
Mitsui O.S.K. Lines, Nippon Yusen Kaisha, "K" Line, Hanjin, Hapag-Lloyd and Yang Ming to create a new partnership "THE Alliance"
Tokyo, May 13, 2016 - Mitsui O.S.K. Lines (MOL, President
& CEO: Junichiro Ikeda), Nippon Yusen Kaisha, "K" Line, Hanjin,
Hapag-Lloyd and Yang Ming have agreed to create a new alliance covering all
East-West trade lanes namely, Asia-Europe / Mediterranean, Asia-North America
West Coast, Asia-North America East Coast, Transatlantic and Asia-Middle East /
Persian Gulf / Red Sea. A binding agreement has been concluded by all partners
and "THE Alliance" is scheduled to begin operation in April 2017 subject
to approval of all relevant regulatory authorities. The initial term of the
cooperation will be five years.
The new partnership will build one of the leading
networks in the container shipping industry combining approximately 3.5 million
TEU or 18% share of the global container fleet capacity. All six partners
operate advanced and competitive fleets with more than 620 ships in total. This
will become the basis of a dedicated fleet deployed into the groups' future
service portfolio. Clients will be able to enjoy an outstanding product
characterized by fast transit times, high frequency sailings and expansive port
Ongoing discussions between Hapag-Lloyd and UASC are
progressing according to plan, although an agreement on business combination
has not yet been reached and will in any event be subject to regulatory
approvals. It is anticipated that UASC will become part of THE Alliance, which
will increase the overall alliance capacity to more than 4 million TEU.
"This agreement is a milestone and will enable the
six partners of THE Alliance to offer sailing frequencies and direct coverage
in the market," member carriers said in a statement. "The unique
product will feature enhanced port coverage in Asia, North America, Europe
including the Mediterranean as well as Middle East. The network of THE Alliance
will ensure frequent sailings, high reliability and very attractive transit
times for all shippers in the East-West trade lanes."
details on the services and port rotations will be published when all necessary
preparations are finalized.