News / Grim prospects for box carriers as collapse of demand weakens balance sheets

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15/04/2020

The risk of another major ocean carrier bankruptcy has grown with the worsening global economic outlook, liner consultancy Alphaliner said today.

It explained that the unprecedented amount of capacity withdrawn in April and May, a result of a collapse in demand, “will hurt carriers’ operating cashflows ...

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Gary Ferrulli
April 15, 2020 at 4:29 pm
This doesn’t consider that 4 Asian countries subsidize their container carriers, plus three their shipbuilding. Korea now is recovering from allowing Hanjin to go under and is rebuilding HMM to take their place and won’t let it happen again. Then the question of France and CMA-CGM. So while the numbers may relate to normal businesses, it’s not the world container shipping is in.

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- Jon Pierre
  April 15, 2020 at 5:57 pm
  I personally think it will be HMM. HMM had the higher debt ratio than hanjin.
  The only so called saving grace with HMM was that they claimed they had a NDA with 2M. When this was scrutinised, it wasn’t worth the paper it was written on.
  Perfect for the 2M, a 2 carriers are removed from Asia Europe (Hanjin & HMM for a period of time). Yet they get more allocation on the Transpacific Trades.
  3 Years on HMM are kicked out again. Scratching for Asia Europe business, when everyone is blanking sailing, cutting loops.
  HMM can try to rebuild, however our clients are refusing to utilise their services.
  You never know which company will go down.
  
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  - Ale Pasetti
    April 15, 2020 at 6:38 pm
    So South Korea, in your view Jon Pierre, will remain without a flagship ocean carrier if HMM goes under? Doesn’t seem very likely, does it?
    
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