Hanjin Shipping, Hapag-Lloyd, “K” Line, Mitsui O.S.K. Lines, Nippon Yusen Kaisha Line and Yang Ming have signed an agreement creating a new partnership called THE Alliance, with operations to begin from April 2017.

According to the carriers, the new alliance will have a total of more than 620 vessels with a combined capacity of approximately 3.5 million TEUs, accounting for about 18% of the global container fleet capacity.

“This agreement is a milestone and will enable the six partners of THE Alliance to offer sailing frequencies and direct coverage in the market,” said the member carriers in a statement. “The unique product will feature enhanced port coverage in Asia, North America, Europe including the Mediterranean as well as Middle East. The network of THE Alliance will ensure frequent sailings, high reliability and very attractive transit times for all shippers in the East-West trade lanes.”

The alliance will be in effect for an initial term of five years.

According to Hapag-Lloyd, its discussions with United Arab Shipping Company on business combination are still ongoing and a decision has not yet been reached, but it anticipates that UASC will join THE Alliance and bring the total alliance capacity to over 4 million TEUs.

THE Alliance will be the third major shipping alliance to emerge from the reshuffling of worldwide container shipping partnerships. Maersk Line and Mediterranean Shipping Company launched the 2M alliance in January 2015, while CMA CGM, COSCO Container Lines, Evergreen Marine and Orient Overseas Container Line announced in April 2016 that they were forming the Ocean Alliance.