Analysis: Korean carriers caught in container trap

The two largest Korean container carriers are increasing their exposure to the container market. But this happens at a time when the two carriers do not have the financial resources to compete for real in a tough market, notes Alphaliner.

Photo: Hanjin

Korea's two largest container players, Hanjin Shipping and Hyundai Merchant Marine (HMM), is the midst of divesting their so-called non-liner assets, namely activities outside the core container business. The two carriers are thus increasing their exposure to a historically low container market that is characterized by rock-bottom rates, sliding demand and significant overcapacity.

And the Korean container carriers could hardly have picked a word time to open themselves further to the container market, according to analyst agency Alphaliner.

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