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Korea's two shipping companies merge container business

  • Author:James
  • Source:Hong Kong Shipping
  • Release Date:2018-03-30
It is reported that Korean North Korea News reported that Sinokor and Heung-A Shipping will formally merge container business. Among them, Changjin Merchant Ship is the leading company, and it is expected to gradually start the merger business and it will be in 2019. Completed before December 31st of this year.
According to Alphaliner's ranking of global container shipping companies on March 28, the two shipping companies ranked 25th and 29th, respectively.

Alphaliner previously analyzed: "As the size (insufficient) and excessive competition in the common market make Korean shipping companies vulnerable, it can only be overcome through comprehensive integration, which is related to China's major shipping companies and Japan's major shipping companies (Japan Shippers, merchant ships, Sakai and Kawasaki Steamboats have similar efforts for the container line recently. However, Korean shipping companies are expected to remain at a disadvantage due to their fragmented and inadequate scale."

Alphaliner believes that an important drawback of the South Korean liner company is that the scale effect is not prominent, and at the same time excessive competition in the common market. All this can only be solved through comprehensive integration, such as the previous merger of COSCO and China Shipping. The merger of companies.

In 2017, Kawasaki Motors, Merchant Shipping Sakai, and Japan Post announced a joint venture to establish a new container shipping company and will use Ocean Network Express as the official name of the new company. From April 1st onwards, in South America and Asia, There are as many as 44 separate airline services on Oceania and Africa's trade routes.