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Hanjin Shipping slips to 10th rank among international container carriers

Collected: 2016.09.22

Distributed: 2016.09.23

Source: Go Direct

South Korea’s largest container carrier Hanjin Shipping Co. slipped to 10th on the global rank in terms of cargo capacity from the seventh position it kept before it was placed under local bankruptcy court early this month.

According to France-based maritime analyst Alphaliner on Wednesday (local time), the Korean shipper with the capacity of handling 547,606 twenty-foot equivalent unit (TEU) of cargoes ranked tenth among international container carriers.

Hanjin Shipping skidded further from eighth on Monday after capacity dwindled with the shipper’s fleet stranded at sea upon jitters about its fate.

The Korean shipper’s rank is expected to experience further drop this week as it is only 3,062 TEU apart from the eleventh UASC that is capable of handling 544,544 TEU of cargoes. The cargo volume with 3,062 TEU is equivalent to only a medium-sized cargo vessel’s capacity.

A Hanjin Shipping official who asked to be unnamed said the cargo carrier is downsizing by returning 19 chartered container vessels after the company entered receivership early this month and the shipper returned one more vessel to the ship owner on Tuesday. Hanjin is expected to promise to the court to return all of 61 ships it leased out and run just 15 of its self-own vessels.

Without Hanjin, Korea will likely lose its reputation as a shipping powerhouse. Hyundai Merchant Marine Co., which will remain as the sole sea flag carrier, ranks 14th among global container carriers with 435,493 TEU capacity.

By Kim Jung-hwan and Yoon Jin-ho

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