THE Alliance Draws Up Financial Plans

March 9, 2017

The members of THE Alliance announced a contingency plan in the event a member of THE Alliance suffers a bankruptcy. 

 
The five member lines Hapag Lloyd, K Line, Mitsui OSK Lines, Nippon Yusen Kaisha and Yang Ming will establish an independent trustee to manage funds to be used in the case there is insolvency within the group. 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 shall safeguard that customers’ cargo on board of the affected members’ ships will be carried to the port of destination. “Customers’ reaction to the incident last summer showed a clear demand for such a safety net and the partners of THE Alliance are proud to present the first contingency plan of its kind in liner shipping.  
 
THE Alliance has also announced its final network after all needed preparations have been finalized. The product starting from April 2017 features fast transit times, a comprehensive port coverage and deployment of modern and most efficient ships. 
 
This is thanks to the “best ship for the loop principle” and a dedicated shuttle service design. 
 
More than 240 ships will be deployed in 32 services connecting over 75 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Subcontinent and the Middle East with a wide range of direct port-port-connections.
 
Through this robust network, THE Alliance will offer a superior, reliable, efficient, and wide ranging product suite to shippers in the East/West lanes. The partners of THE Alliance will keep monitoring customers’ demand and will react to markets if needed.
 

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