ASIA • KOREA
With no 2M membership, HMM then teamed up with intra-Asia carriers Heung-A Shipping and Sinokor Merchant Marine to form HMM+K2, a new partnership launched in March to enhance East Asia and Southeast Asia networks.
The insolvency of Hanjin Shipping also saw HMM take over Hanjin Shipping’s 20% stake at Total Terminals International at US Long Beach, and fully acquired three of its other terminals in Tokyo, Kaohsiung and Algeciras.
Post-Hanjin landscape
Lee Hong Liang looks at the effects that last year’s collapse of Hanjin Shipping has had on Korea’s maritime industrial sector
As the dust settles following the downfall of Hanjin Shipping, South Korea’s shipping scene is witnessing changes to the business
environment with the entry of a new player and assets changing hands.
Once the world’s seventh largest line with 97 containerships totalling 617,000teu in capacity at the time of its filing for receivership on 31 August 2016, Hanjin was declared bankrupt on 17 February this year, succumbing to debts of
approximately KRW5.6trn ($4.9bn).
The global supply chain had been thrown in chaos in the wake of the receivership filing last year as Hanjin vessels found themselves stranded across the globe. But after more than half a year, the dust is finally settling as the assets and businesses of Hanjin have been sold, and the industry has come to grips with the initial shock of such a big shipping bankruptcy.
Compatriot HMM, on the other hand, narrowly avoided receivership in June 2016 after it pulled off a restructuring plan. Since then, things seemed to be going rather smoothly for HMM as it entered into strategic cooperation with the 2M members of Maersk Line and MSC for a combination of slot
Visit:
seatrade-maritime.com
exchanges and slot purchases, despite not being recognised as an official member of the alliance.
The exit of Hanjin Shipping also gave rise to a new carrier named SM Line, which snapped up eight 6,650teu boxships from the defunct carrier. Formed by Korea’s Samra Midas (SM) Group, SM Line bought the Asia-US business of Hanjin. In March, the world’s newest carrier launched a transpacific service covering Shanghai, Ningbo, Busan, Los Angeles with five ships.
With the trend of container lines seeking to be part of an alliance to improve fleet utilisation and widen service network, SM Line has expressed interest in joining the all Korean HMM+K2 partnership.
The more ambitious goal of SM Line is a plan to enlarge its fleet to 21 ships with a total capacity of 110,000teu, in part by ordering discounted newbuilds, by 2018. If the fleet capacity growth is achieved, SM Line could become one of the top 20 lines globally.
1988: Hanjin Shipping formed from the merger of Hanjin Container Lines with Korea Shipping Corp
2013: Hanjin Shipping requested emergency funding from Korean Air
2014: Embarked on financial improvement plan with sale of assets and liquidation of non-core business; Korean Air raised stake in Hanjin
‘HMM aims to focus on strengthening competitiveness through acquisition of more terminals, fleet reorganisation and customer management,’ a spokesperson for HMM said.
Timeline of the Hanjin Shipping Collapse Shipping to 33% with cash injection
2015: Sold stakes in Algeciras and Busan Newport terminal to raise cash
25 April 2016: Hanjin Shipping announced implementation of business normalisation measures to resolve financial stress
4 May 2016: Hanjin Shipping announced voluntary restructuring arrangement with creditor banks
13 May 2016: Hanjin Shipping announced its participation in THE Alliance
4 August 2016: Creditors extend voluntary restructuring agreement deadline by one month
10 August 2016: Korean government ruled out financial aid for Hanjin Shipping
25 August 2016: Korean Air submitted additional funding plan for Hanjin Shipping
30 August 2016: Creditors rejected self- rescue plan and halted funding support
31 August 2016: Hanjin Shipping filed for court receivership
17 February 2017: Seoul court declared Hanjin Shipping bankrupt
Seatrade Maritime Review • Quarterly Issue 2 • June 2017 67 SOURCE: ALPHALINER
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
