Hanjin collapse makes life harder for Korea's rebounding exp
Time: 2016-09-08 13:47
SOUTH KOREA's rebounding exports received a severe blow when Hanjin Shipping filed for bankruptcy last week because they could not longer be loaded to reach overseas markets, reports Japan's Nikkei Asian Review.
The troubled South Korean carrier said that 68 of its vessels - 61 container ships and seven bulkers could not load as port authorities worldwide blocked them for fear of not being paid.
South Korea's exports increased by 2.6 per cent to US$40.1 billion in August year on year, according to government data released September. 1 - the first time in 20 months that Korean exports expanded.
"Hanjin's paralysis definitely has a bad impact on exports," said Lim Dong-min, a senior economist at Kyobo Securities. "It won't be easy for the government and exporters to find alternatives to ship such a big amount of cargo in the short term."
Hanjin is the world's seventh-largest ocean carrier by container volume of 623,000 TEU.
Seoul is moving to minimise negative impacts by letting Hanjin file for stay orders with courts in 43 countries, seeking to block creditors from seizing its vessels.
Korea's Ministry of Oceans and Fisheries also plans to replace some of the tonnage the lost in bankruptcy by deploying 13 ships of Hanjin's domestic rival, Hyundai Merchant Marine (HMM).
HMM is the nation's No 2 carrier with 65 containerships and a combined cargo volume of 447,000 TEU.
It recently survived a liquidity crunch of its own when creditors agreed to extend loans for the shipper which successfully cut its charter fees with shipowners.
Korea also has smaller players, such as Korea Marine Transport Co and Pan Ocean, but neither have ships big enough to replace Hanjin's.
The troubled South Korean carrier said that 68 of its vessels - 61 container ships and seven bulkers could not load as port authorities worldwide blocked them for fear of not being paid.
South Korea's exports increased by 2.6 per cent to US$40.1 billion in August year on year, according to government data released September. 1 - the first time in 20 months that Korean exports expanded.
"Hanjin's paralysis definitely has a bad impact on exports," said Lim Dong-min, a senior economist at Kyobo Securities. "It won't be easy for the government and exporters to find alternatives to ship such a big amount of cargo in the short term."
Hanjin is the world's seventh-largest ocean carrier by container volume of 623,000 TEU.
Seoul is moving to minimise negative impacts by letting Hanjin file for stay orders with courts in 43 countries, seeking to block creditors from seizing its vessels.
Korea's Ministry of Oceans and Fisheries also plans to replace some of the tonnage the lost in bankruptcy by deploying 13 ships of Hanjin's domestic rival, Hyundai Merchant Marine (HMM).
HMM is the nation's No 2 carrier with 65 containerships and a combined cargo volume of 447,000 TEU.
It recently survived a liquidity crunch of its own when creditors agreed to extend loans for the shipper which successfully cut its charter fees with shipowners.
Korea also has smaller players, such as Korea Marine Transport Co and Pan Ocean, but neither have ships big enough to replace Hanjin's.
