South Korea Cleaning Up Its Shipping House
By Soo Cheon Lee, Co-Founder & CIO – SC Lowy
A fragile recovery is underway in the troubled maritime sector, but a greater focus on eliminating costs and paring down debt lies along the painful path to profitability
Cleaning up is always good: cleaning up balance sheets and cleaning up corporate governance make companies more efficient. And the shipping industry urgently needs cleaning up to address chronic surplus capacity and better cope with demand that is unlikely to see the double-digit growth of the past.
But, so far, South Korea is the only country in Asia that is actively cleaning up its shipping sector. It started several years ago with Korea Lines and Pan Ocean’s bankruptcy, and has now moved into container shipping and shipbuilding. Korea continues to lead the way in restructuring its huge shipping sector and that is likely to continue under the new President Moon Jae-in’s government.
Full Story – Soo Cheon Lee – Marine Money (PDF)