From 4.7% in 2014 to 3.9% in 2020
The Federation of Korean Industries announced on Oct. 14 that South Korean shipping companies’ freight space totaled 80,583,000 DWT in January last year, seventh-largest in the world with a share of 3.9 percent.
Greece came in first, followed by Japan, China, Singapore, Hong Kong and Germany. South Korea took the fifth place with a share of 4.7 percent in January 2014 but slid to seventh with 4.4 percent in 2016 after Hanjin Shipping went under. The top two South Korean shipping companies’ share fell from 11.4 percent in August 2016 to 7.3 percent in August this year in the case of the sea route between Asia and the west coast of America.
"South Korean shipping companies have failed to achieve an economy of scale based on M&As and the failure has led to the declining performance,” the federation pointed out, adding, “An increase in their freight space and share is essential for their survival.”
The federation mentioned that more financial incentives should be prepared so that shipping companies can invest in ships with greater ease, and that major shippers and public institutions should be allowed through deregulation to invest in shipping companies.