Foreign shipping companies are filling the gap in global routes after Korea’s largest shipper Hanjin Shipping filed for court receivership in August. Of them, the world’s largest shipping alliance 2M, led by Maersk Line and MSC, have benefitted the most in increasing their market share, according to recent data.
According to Busan Port Authority, Wednesday, Hanjin Shipping’s market share in the Asia-to-North America route marked 7.78 percent last October but plunged to 1.1 percent in the same month this year. Likewise, its share in the North America-to-Asia route has nosedived to 0.01 percent from 8 percent over the same period.
The government had counted on Hyundai Merchant Marine (HMM) to fill the gap, but HMM was outbid in purchasing the assets of Hanjin Shipping’s Asia-North America route, as well as its stake in a California terminal by mid-size bulk shipping operator Korea Lines.
In the meantime, foreign shipping companies have successfully taken over Hanjin Shipping’s market share.
2M’s market share in the Asia-to-North America route increased by 3.5 percent to 17.5 percent while its shares in the North America-to-Asia route rose by 7.8 percent to 24.16 percent.
Not only 2M shippers but also Chinese, Taiwanese and Japanese companies have benefited from Hanjin Shipping’s bankruptcy.
Chinese COSCO increased its share in the Asia-to-North America route by 4.8 percent to 11.09 percent, while Taiwanese Evergreen Marine’s share went up by 1.4 percent to 11.35 percent. Japanese K Line’s share also rose 0.7 percent to 6.32 percent.
In the North America-to-Asia route, COSCO boosted its share by 4.8 percent to reach 9.8 percent while Taiwanese Yangming Marine Transport is up by 2.6 percent at 7.99 percent.
COSCO, K Line, Yangming Marine Transport, Evergreen Marine and Hanjin Shipping had formed the shipping alliance CKYHE before the latter’s bankruptcy.
Unlike industry expectations that HMM would take over most of Hanjin’s share in the routes, the nation’s second-largest shipping line only saw an increase of 0.02 percent each in the Asia-to-North America and North America-to-Asia routes to reach 5.22 percent and 6.56 percent, respectively.
An industry observer blamed the government’s irresponsible countermeasures in dealing with the Hanjin Shipping crisis.
“Korea is an export-driven country where shipping companies’ role is very crucial,” he said. “The government shouldn’t have just let the company go bankrupt and throw it into court receivership without any contingency plan.”
Source: Korea TimesPrevious Next