South Korea’s Hanjin Shipping Co. whose collapse has caused global maritimne traffic crisis is on the verge of being expelled from the newly formed global shipping alliance as its foreign peers have become skeptical of a turnaround for Korean container carrier.

According to Nikkei (Nihon Keizai Shimbun) on Thursday, Yasumi Kudo, Japanese Shipowners’ Association said on Wednesday in a press conference that it would be difficult for Japanese container carriers who are members of THE Alliance to cooperate with Hanjin Shipping.

Japan’s major shipping lines - Nippon Yusen Kabushiki Kaisha Ltd. (NYK), Kawasaki Kisen Kaisha Ltd. (“K” Line) and Mitsui O.S.K. Lines Ltd. (MOL) in May announced it would form a new shipping club named “THE Alliance” with Hapag Lloyd AG from Germany, Yang Ming Marine Transport Corp. from Taiwan, and Korea’s Hanjin Shipping, starting their joint operation in April next year. The shippers must sort out their shipping routes and schedules within this year in order to allow the joint operation to take effect as planned.

But the other members of the newly formed alliance are believed to have come to the conclusion that the alliance should be launched without Hanjin Shipping due to concerns that working with the sinking Korean shipper likely heading to liquidation will prevent the alliance from winning orders.

Their decision also comes after another member Hapag Lloyd in July announced a merger with United Arab Shipping, the largest container carrier in Middle East, a move that is expected to allow the so-called THE Alliance to sustain about 20 percent of the worldwide market share even when it dumps Hanjin Shipping, according to the Japanese news.

Kudo, who also heads NYK, said excluding Hanjin Shipping “would not cause any negative impact on (the new shipping alliance’s) services.”

Meanwhile, Hanjin Shipping was already kicked out from another international shipping club CKYHE Alliance in early September soon after it filed for court receivership.

By Park Dae-eui

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]