The alliance, that comprises Hagag-Lloyd, Mitsui OSK Lines, NYK, K Line and Yang Ming, had originally been set to include Hanjin Shipping which filed for insolvency on 31 August last year leaving cargo from partner lines in the CKYHE alliance and other consortia stranded around the globe.
The members of THE Alliance announced what they described as a “new and unique” contingency plan in the “unlikely event” that one if its members suffered a bankruptcy.
“The five member lines will establish an independent trustee to manage funds to be used in the case there is insolvency within the group,” the lines said in a joint statement.
“It is envisioned that the fund will be used to continue alliance operations in the event of insolvency of one or more member lines. The independent Trust fund will guarantee that customers’ cargo on board of the affected members’ ships will be carried to the port of destination.”
It said customer reaction last summer had shown a clear demand for such a safety net.
Meanwhile THE Alliance 32 service 240 deploying ships connecting over 75 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Sub Continent and the Middle East, which will start from 1 April.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
