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South Korean conglomerate Samra Midas Group (SMG) has applied to the US Federal Maritime Commission (FMC) to start a new transpacific container service.
Branded SM Line, it would begin operating in April, deploying a fleet of five 6,500 teu vessels.
Addressing a meeting of the National Retail Federation (NRF) in New York on Monday, Commissioner William Doyle said executives from SMG had visited the FMC to discuss its application.
Mr Doyle told delegates SM Line was proposing to operate a liner service between Shanghai and Ningbo in China, Busan in South Korea and Long Beach on the US west coast “from the ashes of Hanjin”.
“In addition,” said Mr Doyle, “SM Line intends to operate eight intra-Asia services between China, Japan, Thailand, Vietnam, India, Pakistan, Indonesia and other countries.”
For these services SM Line intended to deploy 11 vessels in the 1,000-2,500 teu range.
SMG bid against compatriot Hyundai Merchant Marine (HMM) for the Asia-US tradelane assets of the bankrupt Hanjin Shipping. According to stock exchange filing by Hanjin on 2 January, the final price of the assets had been reduced from $31m to $23m.
The SMG board refused to approve a plan for the assets to be taken over by bulk-carrying subsidiary Korea Line Corp, citing its lack of experience in container shipping and that the necessary investment would stretch its cashflow. Instead, the board rubber-stamped a proposal to form standalone ocean carrier SM Line.
SM Line was officially launched on 6 January, after the completion of its organisational structure at its headquarters in Yoido, Seoul, by new director Kim Chil-bong (also president of Korea Line Corp) with a ceremony attended by around 200 employees, many formerly employed by Hanjin.
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