Korea Line Corp., a major bulk carrier, will not take over Hanjin Shipping Co.'s service, but instead, its parent company will operate it independently.
South Korea's Yonhap News Agency
said that Korea Line's board members voted against taking over the transpacific liner business of Hanjin.
"Stakeholders were reportedly against the proposal, citing that Korea
Line does not have experience in the container shipping businesses, and
that a general industrywide slump may cause a cash shortage," Yonhap
A source told American Shipper
that Korea Line's parent company, Samra Midas Group (SM Group), will create a separate company called SM Lines that will operate the liner business between the Far East and United States.
said it was told by a group official, "There is a clause stipulating that a separate corporate body can still
acquire the asset when the proposal is turned down at a stakeholders