Hanjin, Tricon reach final agreement on alliance

Hanjin Shipping and the Tricon partners, DSR-Senator Lines and Cho Yang Shipping, have signed a 'Heads of Agreement' on their long-term future alliance.

The pact follows an earlier note of understanding signed by the same parties on August 5.

The structure and rotation of the joint services have been agreed, starting with a phase-in period from mid-1997.

Effective from January, the carriers will implement two pendulum services connecting North Europe-Asia-United States West Coast; one pendulum connecting US East Coast-Mediterranean-Middle East-Asia; one pendulum connecting Asia-US West Coast-US East Coast-North Europe; and three end to end connecting Asia and the West Coast of the US and Canada.

There will also be services with other partners covering smaller trades, including Latin America, Africa and the Indian sub-continent. In addition, intra-Asia activities may be combined.

More than 70 vessels will be deployed by the alliance, 30 of which will have a capacity of more than 4,000 20 ft equivalent units (teus) and speed of 24 knots.