Hanjin Asia-U.S. Assets being bought by Korea Line

Shock Transfer – Korea Line Shopping for Hanjin’s Asia-US Belongings

Hanjin Vienna image by: Afrank99

We now know who will probably be shopping for Hanjin’s Asia-U.S. property.

Sure, we’re nonetheless speaking about Hanjin Delivery. Sure, we all know Donald Trump was elected president final week. Sure, we posted a weblog on what his presidency means for shippers. No, that story doesn’t trump the largest information within the worldwide transport trade: the fallout of Hanjin’s collapse.

In a flip solely rather less shocking than Trump’s election, Korea Line received the bid to purchase Hanjin Delivery’s Asia-U.S. property.

Most trade consultants thought the Asia-U.S. property put up on the market after Hanjin’s collapse can be purchased by South Korea’s different main container transport firm, Hyundai Service provider Marine (HMM). There had been those that believed Maersk would transfer in for the acquisition due to Maersk’s introduced technique of buying struggling opponents within the ocean service enterprise (though I used to be not amongst these). However I don’t know of anybody who thought Korea Line would transfer in and purchase these property.

The most important motive that is such a shock is that Korea Line isn’t a container transport firm. Right here’s a fast rundown of the corporate from Reuters:

KOREA LINE CORPORATION is a Korea-based firm engaged within the provision of marine transportation companies. The Firm operates a fleet of carriers, together with bulk carriers for iron ore, liquefied pure fuel (LNG) carriers for pure fuel, and tankers for oil and petroleum merchandise. The Firm’s prospects embrace POSCO, Korea Fuel Company and KOREA ELECTRIC POWER CORPORATION.

Discover Korea Line’s deal with bulk transport. This appears like an enormous growth second for the mid-level transport firm to maneuver into the container transport sector.

HMM did make a bid for Hanjin’s Asia-U.S. property, however Korea Line’s bid was higher. American Shipper experiences:

Korea Line Corp. has been picked as the popular bidder for the property of Hanjin Delivery’s enterprise between Asia and the US, beating out Hyundai Service provider Marine (HMM), based on media experiences.

The deal needs to be accomplished rapidly and is nice information for the Asia-U.S. staff of Hanjin. Yonhap New experiences:

The Seoul Central District Courtroom mentioned the ultimate deal will probably be signed on Nov. 21, and along with the U.S.-Asia route, Korea Line has made a bid for Hanjin’s stake within the Port of Lengthy Seashore, California.

Hanjin Delivery owns a 54 % stake in Complete Terminals Worldwide (TTI), which operates two amenities in Lengthy Seashore and Seattle, and handles some 30 % of cargo alongside the U.S. West Coast.

Hanjin Delivery’s Asia-U.S. route logs gross sales of as much as 4 trillion received yearly, and its market share stands at 7 %, the sixth-largest amongst international shippers.

The courtroom mentioned Korea Line has expressed its intention to supply job safety for some 700 land and sea-based staff working for Hanjin Delivery.

With all of the monetary battle HMM has had, the soundness of these 700 jobs appears a lot stronger with Korea Line. Staff should have breathed a sigh of aid upon the announcement of Korea Line’s bid being chosen; their labor union’s hopes for this end result had been made clear in an article from Korea JoongAng Each day:

“Our precedence is on who should buy out the utmost workforce from Hanjin,” Hanjin Delivery’s labor union for workplace employees mentioned in an announcement Monday earlier than the courtroom’s announcement.

“We’ve got no different possibility however to hope for Korea Line’s win as job safety and monetary stability can’t be assured with Hyundai Service provider Marine,” the union’s chief, Chang Sung-hwan, mentioned.

As we’ve been watching the ever shrinking competitors pool of carriers within the container market of worldwide transport, it’s fascinating to see the attainable emergence of a brand new vital participant in container transport.

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