Korea Line Corp might not be entering the transpacific container trades after all. The board at the dry bulk line’s parent, SM Group, today voted against a plan to take over defunct Hanjin Shipping’s transpacific operations.
Korea Line surprised many when late last year it beat out the likes of Hyundai Merchant Marine (HMM) with a $31.5m bid to take on Hanjin’s transpacific assets.
However, SM’s board has decided that Korea Line, a dry bulk player, does not have the necessary experience in container shipping to take on the new business. The board was also understood to have discussed their concerns that the container sector is set for another few years of bad performance.
SM took over Korea Line, a high profile bankruptcy, in 2013.
HMM, which has outlined plans to more than double its global market share to 5% in the coming few years, will be ready with another bid for the Hanjin assets if they do become available again.