According to South Korean media reports today, South Korea’s 3rd and 4th container ship companies, Heung-A Shipping and Sinokor, are advancing mergers. Xingya Shipping, Changjin Merchant Shipping and Hyundai Merchant Shipping are all members of the “HMM+2K”, a joint shipping alliance in Asia. The shipping industry believes that the merger of the two companies may represent a formal restructuring of the shipping companies in Asia that are oversupplyed due to excessive competition. con. reducer
On the 28th, according to the shipping industry, Xingya Shipping and Changjin Merchant Shipping will merge the two companies’ container divisions on the 3rd of next month, and have recently explained relevant contents to employees. The two companies will first set up a comprehensive legal entity for the shipping, airline and equipment sectors, and plan to merge the operating departments by December 31, 2019 to complete the merger in a step-by-step manner. Before the completion of the business combination, the two companies will continue their respective business activities. 45 deg SR elbow
Xingya Shipping, Changjin Merchant Shipping, and Korea Shipping are representative shipping companies in Asia. Xingya Marine achieved sales of 831.7 billion won in 2016. By the end of 2016, there were 942 employees, including land employees and foreign employees. In 2016, sales of Changjin Merchant Shipping reached 886.9 billion won and 247 employees (as of the end of 2016).
According to the latest data from Alphaliner, the shipping analysis organization (March 28th), Changjin Merchant Shipping ranked 25th in the world with a capacity of 54260TEU (self-owned capacity of 27619TEU) and operated 44 ships (including 22 own-ships); Shipping ranked 29th in the world with a capacity of 45686TEU (owned capacity 13460TEU) and operated 37 ships (including 16 ships owned by itself). slip on flange
The two companies had a total capacity of 99,946 TEU, which jumped to 21st place in the world and was close to the 20th currently known as SITC (SITC with capacity of 104,071TEU).
Xingya Shipping and Changjin Merchant Shipping have recently been struggling in Asia. Although freight rates are maintained at about the same level as last year, the burden of various expenses has grown rapidly. The cost of vessel leasing increased by 1.5-2 times while the fuel cost increased by about 2 times.
In 2014, Xingya Shipping also achieved an annual operating income of 20 billion won, but due to the impact of the shipping slowdown, the 2016 drama was reduced to 5.8 billion won. In the first three quarters of last year, a cumulative operating loss of 4.3 billion won was incurred, and the net loss for the current period reached 41.5 billion won. The annual operating revenue of Changjin Merchant Shipping reached 54 billion won in 2014 and 32.2 billion won in 2016, a decrease of approximately 40%.
Xingya Shipping recently reported a financial crisis and its business in China has become difficult. It is reported that after the completion of the merger of Xingya Shipping and Changjin Merchant Shipping, it is also planned to merge another 2-3 offshore shipping companies. The plan is under discussion. welding neck flange
The Korea Ministry of Maritime Affairs and Fisheries believes that there are many offshore shipping companies that have joined the Korea Maritime Federation (KSP) and it is necessary to voluntarily carry out structural adjustments. Changjin Merchant Shipping and Xingya Shipping are taking the lead in this area. High-level stakeholders from the Ministry of Maritime Affairs and Fisheries indicated that there are many Korean shipping companies serving service routes in January. LR 45 deg Elbow
Korean shipping companies joining KSP include Hyundai Merchant Shipping, SM Merchant Shipping, Korea Shipping, Southern Star Shipping, Toei Marine, Dongjin Merchant Shipping, Douyu Shipping, Pan Ocean Shipping, Changjin Merchant Shipping, Tian Jing Shipping, Tai Rong Merchant Shipping, and Pan Ocean Shipping (PAN OCEAN), Hansung Line, and Xingya Shipping.