Hapag-Lloyd agreement to provide stable space for Hankook tires until 2024

Hapag-Lloyd has an agreement to provide stable space for Hankook tires until 2024 (Photo: Hankook Tire)

Global port congestion and record-high freight rates, due to a global container shortage, prompted Hankook Tire & Technology to sign a long-term contract with Hapag-Lloyd. Through this contract, Hankook Tire wishes to cooperate with Hapag-Lloyd to strengthen its logistics capacity.

In particular, under the agreement, Hapag-Lloyd will provide Hankook with a stable supply of shipping containers as well as long-term logistics services from 2022 to 2024.

South Korea's largest tire manufacturer - Hankook - has signed a three-year shipping contract with Germany's largest shipping line - Hapag-Lloyd - to ensure sufficient shipping capacity, even if other shippers appear to conflict about being tied to current freight rates.

Neither Hankook nor Hapag-Lloyd disclosed the shipping routes signed, citing business confidentiality.

The two sides have a business relationship of about 20 years, Hapag-Lloyd is the shipping line that carries a large part of the exports of tire manufacturer Hankook. Hankook said it decided to contract with Hapag-Lloyd because difficulties in securing shipping space and container equipment, coupled with fluctuating freight rates, were a challenge.

While some US retailers have signed multi-year shipping contracts for guaranteed shipping at discounted rates. The picture remains unclear for Asian shippers, although the government has encouraged Chinese shippers to opt for such contracts.

Besides Hapag-Lloyd, Hankook said they are also considering signing similar agreements with other shipping lines, and added: “We’ll strive to ensure a smooth export flow, even in the difficult shipping market conditions, through partnerships with various domestic and overseas shipping companies."

In June, the British trade magazine Tirepress ranked Hankook as the world's sixth-largest tire manufacturer, with global sales of around $5.71 billion.

Meanwhile, on December 3, the Shanghai Container Shipping Index reached 4,727.06 points, surpassing 4,700 for the first time since October 2009.

Read more:

• Shippers hope that more carriers will follow CMA-CGM and Hapag-Lloyd to freeze freight rates.
• Hapag-Lloyd confirms to stop increasing freight rates
• Hapag-Lloyd increased profits nearly 10 times in the first 6 months of the year
• Container shortages, port congestion and ship delays have pushed freight rates sky-high

Source: Phaata.com (According to Containernews / The Loadstar)

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