Foreign Shipping Companies Increase Shares in the Market After Hanjin Shipping Filed Bankruptcy

by San Antonio Attorney

Foreign shippers are getting more of their shares in the market in key shipping routes worldwide after Hanjin Shipping Co. filed for bankruptcy.  The shipping industry expected that its Korean counterpart Hyundai Merchant Marine Co. will get a big part of Hanjin’s business.

Hanjin had 7.78% of the Asia to U.S. route in 2015, but its share dropped to 1.1% in 2016, based on the information provided by the Busan Port Authority.

The data indicated the void caused by Hanjin’s problem has been taken up by 2M, the biggest shipping alliance in the world that is headed by Denmark’s Maersk and China’s COSCO.

2M’s increased its Asia-U.S.  route from 3.5% to 17.5% in October 2016.

COSCO enlarged its share of the said route from 4.8% to 11.09% in October 2016.

Taiwanese and Japanese shippers also experienced an increase in their shares of the route.

Evergreen Marine in Taiwan augmented its share of the Asia-U.S.  course by 1.4% and K-Line in Japan augmented by 0.7%, the data shows

On the contrary, Hyundai Merchant’s share of the Asia-U.S. course increased by 0.02% point to in October 2016.

Hanjin Shipping, presently subjected to court receivership, is looking for a buyer of its assets in order to endure the crisis in the industry and shortage of funds.  Hanjin Shipping along with local shippers are struggling to keep afloat because of declining freight rates with a glut of shipping vessels and a prolonged crisis in the global economy.

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