The transpacific has a new container player from South Korea. Hanjin Shipping said today compatriot Korea Line Corp has paid $31.4m to take over its transpacific assets, a deal which includes five boxships but not a stake in a terminal in Long Beach, California, as originally outlined when Hanjin first put these assets in the shop window.
Korea Line, which to date has been a bulker player, beat another Korean company, Hyundai Merchant Marine, to these assets. The sale will be completed on January 5.
Under the deal, 574 employees of Hanjin Shipping will transfer and work for Korea Line.
Korea Line like Hanjin has also faced financial difficulties during the shipping downturn. It was eventually bought out by Korean conglomerate SM Group two years ago, while Hanjin has been under court receivership since the end of August.
Wonder what exactly does Korea Line plan to do by entering the Transpacific; we have earlier had players like GWS etc. who could never compete with the big boys. Is this all a waste???