Korean Carrier to Customers: We’re Not Sinking

By Mike Wackett (The Loadstar) - Another South Korean shipping line under financial pressure has had to write to customers to dispel market rumors of a second box carrier crash. According to Alphaliner, intra-Asia liner and chemical tanker and logistics operator Heung-A has written to shippers to reassure them that its recent decision to terminate services on a number of … [Read more...]

U.S. Federal Maritime Commission Applauds THE Alliance’s $50 Million Contingency Plan

By Gavin van Marle (The Loadstar) The US Federal Maritime Commission (FMC) yesterday approved THE Alliance’s plan for a $50m contingency fund in case one of its members becomes insolvent or suffers serious “financial distress”. Each of THE Alliance’s members – Hapag-Lloyd, MOL, NYK, K line and Yang Ming – are to contribute an initial $1m and a further $9m in “additional … [Read more...]

Report: South Korea’s Shipping Lines to Form Alliance

South Korea's shipping companies are preparing to launch a domestic shipping alliance to help the nation better compete in the global container shipping industry in the wake of Hanjin's collapse, according to local media. The move comes amid continued consolidation in the industry and less than one year after the collapse of Hanjin Shipping Co., once South Korea's … [Read more...]

Where South Korea’s Teetering, Debt-Laden Companies Go to Bank

By Kyunghee Park and Jung Park (Bloomberg) -- Last August, the Korea Development Bank left cash-strapped Hanjin Shipping Co. adrift at sea -- literally. South Korea’s state-owned lender, the nation’s largest policy bank, and other creditors turned down a bailout request from Hanjin, then one of the world’s biggest shipping lines. That in turn led to a bankruptcy … [Read more...]

Shipping Can and Must Prevent Another Bankruptcy, FMC Chief Warns

By Gavin van Marle in Long Beach (The Loadstar) - The entire shipping industry – carriers and their customers and suppliers – need to come together to ensure that the supply chain disruption caused by the Hanjin bankruptcy never happens again, said Federal Maritime Commissioner William Doyle this week. “This [the response to Hanjin’s bankruptcy] could have been done … [Read more...]