Alphaliner:
State Aid for Carriers to Delay Market Recovery
Increased government intervention to provide financial support to struggling carriers could ultimately delay a much-needed restructuring of the container shipping sector, according to Alphaliner.
According to MANA, State aid might well prolong the industry’s recovery process, as shipping continues to grapple with the problem of vessel overcapacity.Last week, the government of Taiwan approved a TWD 60 billion (USD 1.9 billion) funding package with preferential interest rates for Taiwanese shipping companies and it agreed to grant carriers reductions in various port dues. Yang Ming and Evergreen expected to be the main beneficiaries of these decisions.
“The large amounts of financial aid which state-related entities in Taiwan and South Korea provided to protect the nations’ ailing shipping lines, come amid a slump in earnings, while shippers have been spooked by Hanjin Shipping’s bankruptcy,” Alphaliner said.