Skip to main content

Global trade crisis could sink shipping giant

Global – South Korea’s largest shipping group Hanjin is set to enter receivership because its creditors are refusing to provide further funding for the indebted business. The world’s seventh-largest container line is facing a cash shortage after failing to persuade key lenders to reschedule debt under a new restructuring plan, reports the BBC. The group has been unprofitable for four of the last five years.

Hanjin may obtain some financial relief courtesy of rival Hyundai Merchant Marine (HMM), shares in which jumped by as much as 22% after South Korea’s financial regulator said the firm might buy some of Hanjin’s assets. However, HMM itself has not been spared from the sector’s woes and recently announced a reorganisation plan too.

South Korea’s shipping and shipbuilding industry has been one of the hardest-hit by a prolonged downturn in global trade. A drop in orders has led to overcapacity and depressed freight rates, as well as an increase in debts. The country’s government has announced that it is looking to undertake a painful reorganisation of the entire industry which will require major retrenchment.

Don't hesitate to contact us to share your input and ideas. Subscribe to the magazine or (free) newsletter.

You might find this interesting too

RI TALKS! with US recycler John Sacco
Bank backs scrap trader’s acquisition strategy
Radio reminders of Romania’s past

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe now and get a full year for just €169 (normal rate is €225) Subscribe