South Korea and shipping


We talk a lot about USA, China, but trust in our shipping world, talking a bit about South Korea is at some stage needed. Korea being a big provider of ships from their yards it has surely a bigger influence than we believe at first sight. South Korea is going through tough time. With a president being not really the one Koreans were expecting, Samsung being missing his leader and now shipyards facing quite hard time. Korean let Hanjin go burst last year and Daewoo’ future -world’s biggest shipmaker- is now in creditors hands.

As a matter of comparison :

  • Hanjin was about 100 ships around the world and 11,000 jobs at risk
  • Daewoo would be about 50,000 jobs at risk and $34 billion of vessels orders in the pipe.

You can find here detailed article. And reminding you, Hanjin was too big to fail last year with the known result.

Polaris, South Korean’s owners of the Stellar Daisy who sunk earlier this month is also in the center of marine’s talk, having a second VLOC under repair in South africa after inspectors finding a 15cm crack on the outer hull of a starboard tank. Worth to mention, Polaris is the world largest VLOC owners with 32 ships, out of which 19 were tankers converted into drybulk carriers (Stellar daisy and Stellar unicorn are both converted ships). Wondering if Polaris managers had some connections with the government in place to get the ships approved to go at Sea would be pure speculation but obviously in a simple mind, as mine, it’s allowed to wonder, no?

On the chartering side, we keep seeing quite a lot of handies/supras requirements ex continent/Baltic. Quite a lot of Fertilizers requirements from the Baltic are still in the air, helping owners to resist to propose a discount on their rates, the fixture reported in today’s bdi with 32,500dwt Yangtze Classic built 2012 dely continent prompt for 2/3 ll redel Atlantic at $8,750 daily. Vessel said open Portbury in UK… Grains contracts from the St Lawrence are also flourishing now the ice season is over and noticeable fact for today is the USG handy market with index managed to stop bleeding and back to some positive trend.  Quite few fresh grains stem in the air has been seen here in the last couple of days.

All in all this week will be a short on on the chartering market with 84 countries closing their doors for Good Friday and probably even more being off on Easter Monday.

This might lead to a kind of move down overall with owners willing to be fixed before the Easter Break and the quietness which goes with such.

Have a nice afternoon, evening.




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