[ Hyundai, Global Alliance Sign Long-Term Agreement ]

Members of the Global Alliance-Mitsui O.S.K. Lines(MOL), Orient Overse
as Container Line(OOCL) and the shipping unit of APL Limited(APL)-and
Hyundai Merchant Marine Co Ltd(Hyundai) announced a multi-year agreeme
nt between the Global Alliance and Hyudai to share vessel space and co
ordinate vessel sailings in the trans-Pacific and Asia-Europe trades.
The agreement would provide customers of each container shipping line
with access to a combined fleet of at least 72 liner containerships. A
dditionally, the carriers have agreed to discuss opportunities for sha
red terminal operations and feeder vessel services and to pursue coope
rative arrangements on other major shipping routes.
A letter of intent has been signed by the carriers. The parties expect
to complete detailed agreements, vessel deployments and pbtain necess
ary povernment approvals by the and of 1997, with the goal of initiati
ng new services during the first quarter of 1998. The four carriers wi
ll begin exchanging vessel space in the trans-Pacific and Asia-Europe
trades on a limited basis later this summer.
Although ship deployment have not been finalized, the carriers said th
ey expect this cooperative relationship to result in nine weekly servi
ces between Asia and the West Coast of North America; and three weekly
services between Asia and Europe, in cooperation with Malaysia Intern
ational Shipping Corporation. Coordination of all four carriers’ line
r vessel schedules is also expected to make available significant tran
sit time improvements, as a result of more direct sailings between key
markets, and improved vessel utilization.