THE Alliance to Establish Trustee for Bankruptcy Protection
The five member lines of THE Alliance said that they will establish an independent trustee to manage funds to be used if one of the carriers suffers a bankruptcy.
Through the contingency plan, the fund will be used to continue alliance operations in the event of insolvency of one or more members of THE Alliance, which comprises Hapag-Lloyd, K Line, Mitsui O.S.K. Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK Line) and Yang Ming.
The independent trust fund will safeguard that customers’ cargo on board of the affected members’ ships will be carried to the port of destination, the member carriers said.
The plan was devised on the back of Hanjin Shipping’s demise, which “showed a clear demand for such a safety net,” THE Alliance added.
Additionally, the member carriers unveiled the final network after all needed preparations have been finalized.
Starting from April 2017, THE Alliance plans to deploy more than 240 ships 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 range of direct port-port-connections.
Source: World Maritime News