The South Korean government has set out to promote more mergers among its hard-pressed liner companies. The country, which saw its flagship carrier, Hanjin, fold in spectacular fashion three years ago, has been taking many measures in recent years to try and avoid another fallout from a liner collapse.
The Ministry of Oceans and Fisheries in its policy plan for this year released yesterday said it will seek ways to prevent cutthroat competition among local liners, promoting mergers among the country’s eight major container carriers to bring down the number down to just six names. The majority of Korea’s carriers are focused on the intra-Asia trades, with many already in an alliance in this tradelane.
Also announced yesterday by the ministry were plans by the state via recently created vehicle Korea Ocean Business Corp to order 60 LNG-fuelled ships this year.