Hanjin given a lifeline!

Hanjin Shipping has been handed a massive get out of jail free card, courtesy of the South Korean government. The government has stated that they will provide Hanjin with the funding required, in a bid to keep the financially crippled shipping giant afloat.

Seoul has announced it will give Hanjin in excess of $91m, whilst also providing low-interest rates. The news has been welcomed from investors around the world, with shares in the company rising by 20%. Last week, news that the company had filed for bankruptcy sent alarm bells ringing around the world to shipping ports and retailers, unsure whether they will receive payment or merchandise respectively. Therefore shipping ports were refusing the ships permission to dock and causing much of Hanjin’s fleet to be stranded at sea and with the risk of being seized, due to payment failure.

The fact Hanjin’s woes made headlines around the world was hardly surprising, considering the fact they are the seventh biggest shipping line and due to the abysmal financial state of the shipping currently, it was only a matter of time till there was a casualty. To put it in perspective, consecutive years of fierce competition and poor performances from Hanjin saw a staggering $5.4 billion of debt accumulated.
You have to wonder whether the $91m being offered is going to be enough, considering the amount of debt Hanjin has amassed, nevertheless, let’s hope for the time being at least, Hanjin can finally deliver the merchandise that has been stranded at sea.

Advertisements

Published by

Shanghai Metal Corporation

As an integrated global manufacturer, supplier of metal related products and reliable services we dedicate this blog to manifest our interests on different topics that would surely brighten your mind everyday. Each article is suited for every types of reader because we value simplicity as the key to transmit messages. Follow us and stay updated ~! Visit our main website to learn more about us : http://www.shanghaimetal.com/ Our address : 20th Floor Yuan Mansion, 738 Dongfang Road, Shanghai, China 200122 Email : shanghaimetalcorp@gmail.com Skype : shanghaimetal Telephone : +86 21 6875 6127 Monday - Friday : 9am - 5pm Saturday & Sunday : Available by appointment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s