Alphaliner: Hanjin’s Reputation Irreparably Damaged

The poor handling of Hanjin Shipping’s collapse has done irreparable damage to the Korean carrier’s reputation, and it is improbable that Hanjin Shipping can be revived as it was despite the Seoul district court’s approval for rehabilitation granted on September 1, according to Alphaliner.

A merger with Hyundai Merchant Marine (HMM), or any potential ‘white knight’, can also be ruled out, given its financially encumbered status.

With HMM, backed by the Korean Development Bank (KDB), now looking at the acquisition of Hanjin’s ‘profitable’ assets, a liquidation of Hanjin Shipping appears to be the most likely outcome.

“The rapid disintegration of the company sent shock waves across the liner market,” Alphaliner said.

Carriers and shippers scrambled to take contingency measures to fill the void left by Hanjin Shipping, which held a global market share of just under 3%.

The carrier’s departure is expected to be mostly felt on the Transpacific and Asia – Europe routes, where the shipping line had capacity shares of 6.7% and 4.9%, respectively.

“Responsibility for the fallout must be jointly borne by Hanjin Shipping’s creditors and by the Hanjin Group, who continued to wrangle over sharing the cost of a financial restructuring until the very last minute, and who were unprepared to deal with the consequences of the insolvency proceedings,” Alphaliner added.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

CWC World Gas & Power Series – Brazil & the Americas Summit

CWC World Gas & Power Series: Brazil & the Americas Summit is the perfect meeting place to make contacts…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >