South Korean liner operator SM Line and compatriot third-party logistics group CJ Logistics will work together to expand their logistics businesses in North America, after signing a memorandum of understanding (MoU) on 21 November.
The two companies will focus on the ocean freight and trucking of reefers, providing cold chain services between South Korea's Busan port and the US West Coast.
CJ Logistics will tap into SM Line's ocean logistics network and temperature-controlled reefer delivery services, while making use of its US branch's logistics network to expand inland trucking.
CJ Logistics said this means that it is assured of the availability of refrigerated containers for its customers.
SM Line's CEO Yoo Jo-hyuk said his company expects to secure high-value cargoes, which will not only help improve profitability, but also reduce costs associated with transporting empty containers.
Yoo said he expects the collaboration with CJ Logistics to speed up transportation for inland cargo and hopes this will boost relationships with SM Line's customers.
In addition, CJ Logistics will continue to collaborate with SM Line and expand its global logistics business by exploring and developing additional routes to Thailand and Vietnam.
Kang Byeong-koo, head of global division at CJ Logistics, said, "As companies representing South Korea's logistics and shipping industry, our agreement is very meaningful in terms of maximizing logistics synergies. We will work hard to establish a business model and introduce various logistics services that meet the needs of our customers.”