Major carriers quick to take over Hanjin's long-haul routes

Major carriers quick to take over Hanjin's long-haul routes THE world's leading shipping lines have been quick to fill the gap left by the collapse of Hanjin Shipping, with 70 per cent of the South Korean carrier's long-haul trade routes taken over by these carriers, according to South Korean lawmakers. Speaking at a national assembly session, lawmaker from the Minjoo Party, Eui Sung-gon, said that data from Busan Port Authority showed that of the 97 container ships operated by Hanjin Shipping, 59 vessels serviced six trans-Pacific and Asia-Europe routes, reported IHS Media. Hyundai Merchant Marine (HMM) and other mainline operators have been quick to deploy extra vessels to replace Hanjin Shipping's vessels that were stranded outside of ports and to grab market share. While HMM deployed five 5,000 TEU ships to Hanjin Shipping's trans-Pacific route and one 4,600 TEU ship on the Asia-Europe route from Busan port, the 2M alliance comprising Maersk Line and MSC deployed six 5,000 TEU ships on the same routes. Yang Ming deployed four 4,000 TEU ships on the same routes, while "K" Line deployed two 4,000 TEU ships and one 8,000 TEU vessel. In total, from Busan port alone, foreign carriers deployed 62,000 TEU of capacity to Hanjin's long-haul routes, while HMM contributed 29,600 TEU. Shipping lines have also taken advantage of the situation to raise freight rates. A 40-foot container now costs US$2,000 to be shipped to the US from Busan, representing an increase of 67 per cent prior to Hanjin's bankruptcy filing. Mr Eui was quoted as saying: "The government, by not considering the national interest with regard to Hanjin Shipping, have enabled foreign carriers to assume sovereignty over the logistical flow of South Korea's imports and exports, with the result that freight rates have been inflated.