Hankook strikes deal to alleviate shipping concerns

HAMBURG, Germany—Hankook Tire & Technology Co. Ltd. has struck a deal with Hapag-Lloyd A.G., one of the world's largest liner shipping companies, to strengthen its logistics capabilities.

Under the agreement, Hapag-Lloyd will provide Hankook with a stable supply of shipping containers as well as sustainable logistics services for three years, starting in 2022.

"We are delighted to partner with Hapag-Lloyd in this long-term agreement that will help enhance Hankook's export capacity and stabilize our global supply chain amid a volatile environment," Hankook Tire President and CEO Sooil Lee said.

"We believe this strategic cooperation will ensure a resilient ecosystem which will further fortify our global competency especially in times of uncertainty."

A global shortage of shipping containers, primarily caused by the COVID-19 pandemic, has led to continued port congestion and freight prices at all-time highs, Hankook said.

The agreement was signed in the midst of a global logistics crisis and reflects a close partnership between Hankook and the German shipping company that covers over two decades.

Hamburg-based Hapag-Lloyd is 175-year-old company that provides liner services between all continents and operates 257 ships. It considers itself a company that seeks to conserve global resources and protect the environment, traits that are in line with Hankook's dedication to sustainability.

Hankook manufactures tires in plants in four nations on three continents and relies on international trade.