The members of THE Alliance have announced a new and unique contingency plan in the “unlikely event” that a carrier line suffers 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 fund will be used to continue alliance operations in the event of insolvency of one or more member lines and an independent trust fund shall safeguard that customers’ cargo on board of the affected members’ ships will be carried to the port of destination.
A joint statement from the memebers said: “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 news will be welcomed by US Federal Maritime Commissioner William Doyle, who recently called on carrier alliances to “work in the direction of providing safeguards” to ensure cargo is delivered in the case of another bankruptcy like Hanjin Shipping.
Hanjin was recently declared bankrupt by a South Korean court after 40 years of operations which saw the South Korean company reach the top 10 for global shipping. Hanjin’s collapse is the largest to hit the shipping sector and sent shockwaves through the industry.
THE Alliance, due to start from April 2017, boasts “fast transit times, a comprehensive port coverage and deployment of modern and most efficient ships” after announcing its final network.