Hyundai Merchant Marine (HMM) will not be drawn on whether it will pick up assets from bust compatriot line Hanjin Shipping. Hanjin sought court receivership yesterday with debts of $4.2bn becoming the largest bankruptcy in container shipping history. The South Korean financial regulator, the Financial Services Commission (FSC), suggested HMM is now likely to buy Hanjin’s “good” assets.
However, HMM, itself just out of another harsh restructuring exercise, is remaining cautious on taking on extra burdens.
“Currently, there are no set plans for taking Hanjin’s assets. HMM will discuss them later with the FSC more in detail,” a spokesperson for HMM told Splash today.
With supply chains out of South Korea taking a hit from Hanjin’s demise, HMM has agreed to deploy 13 or more of its ships to cover two routes operated by Hanjin.
HMM will offer a “reasonable” shipping rate to ease the burden of increases in freight costs for South Korean firms, the FSC said in a statement today.
LG Electronics, the world’s second-largest manufacturer of televisions, is one of many Korean shippers plunged into chaos following yesterday’s bankruptcy. It has revealed it uses Hanjin for up to a fifth of its deliveries to the US.
Were HMM to push ahead with a take over of Hanjin it would be bad news for members of new container grouping THE Alliance, which is due to start operations next April, as outlined in the graph below provided by SeaIntelligence Consulting.
Splash will be providing continued updates on the Hanjin upheaval. To view our full archive on container shipping’s largest ever bankruptcy, click here.