• Title/Summary/Keyword: Hanjin Shipping

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The Nationality Effect of Price Discrimination in the Container Shipping Market and Its Implications for Development Economics: Treating Hanjin Shipping's Collapse as a Natural Experiment

  • Ko, Byoung-Wook
    • Journal of Korea Trade
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    • v.24 no.6
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    • pp.115-134
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    • 2020
  • Purpose - International trade leads to the international division of labor, improving the efficiency of the global economic system. Transport costs are a more serious barrier to international trade than customs tariffs. An increase in competition in the transport sector may thus lead to a reduction in transport costs. However, if a carrier's nationality significantly influences transport costs, simply adding more competing carriers of different nationalities would be ineffective. Therefore, it is necessary to establish national or regional carriers to influence competition and reduce transport costs. This study investigates this "nationality effect" by treating Hanjin Shipping's collapse as a natural experiment. Design/methodology - The theoretical basis of this study is the 3rd-degree price discrimination in container shipping market. By using the monthly data of container freight rates of Korea, China and Japan, this study shows the so-called Korea Premiums, which are the empirical counterparts of nationality effect in Korea container shipping market. For this empirical investigation, the structural model with state-space form is used and the dummy models are also estimated. In addition, because China has been also affected by the Hanjin's collapse, the China premiums are considered too. Findings - Compared with Japan's case, it is shown that there had been the so-called Korea premiums since the collapse of Hanjin Shipping. These results are robust from both the state-space model and dummy models. The time pattern of Korea premiums was consistent with the market evolution, especially the pattern of substitutability in container shipping markets. In addition, this paper shows the magnitude of Korea premiums. Originality/value - The argument of this study that the nationality effect can be interpreted as an extended concept of the home market effect is original, which is expected to evoke future research efforts. Further, the discussion on the shipping industrial policy from both horizontal and vertical aspects will provide the relevant policy makers with solid information, especially for the policy coordination in a global scale.

A Study for Coastal T/S Transport Activation of Busan Port Container Cargoes (부산항 컨화물의 연안환적운송 활성화에 관한 연구)

  • Chai, Hee-Jeong;Ahn, Ki-Myung;Kim, Kwang-Hee
    • Journal of Navigation and Port Research
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    • v.32 no.3
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    • pp.159-165
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    • 2008
  • The coastal shipping transport for containers had been serviced by Hanjin Transpotation Co., Ltd. and Korea Express Co., Ltd. from 1995. But Korea Express Co., Ltd. and Hanjin Transpotation Co., Ltd had stopped a coastal shipping transport service routed Busan-Incheon bemuse of getting worse of operation balance in 1999 and 2006 respectively. As a result of these situations, korean-flag and foreign-flag fleets are having difficulty in handling T/S cargos and in-time transport service among inter-ports in korea. As shippers also use lorry to transport their cargos than using costal shipping, it occurs increasing in national logistics' cost as well as time-consuming due to congestion on the road. Therefore, this paper identifies not anly current costal shipping transport systems but also those problems and analyses a economic effect in case of participation in the costal shipping transport service by foreign-flag vessel using monte carlo simulation.

A Theoretical Study on the Causes of the Sinking Disaster of M/V Hanjin-Inchon ("한진인천"호 침몰종의 원인에 관한 이론적인 연구)

  • 윤점동;권종호;주재훈;허용범;윤순동
    • Journal of the Korean Institute of Navigation
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    • v.11 no.2
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    • pp.33-52
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    • 1987
  • The disasters of wet bound vessels have been more frequent than those of east bound ones on the sea routes of the North Pacific Ocean in winter season. M/V Hanjin-Inchon was also west bound in her missing voyage. The container vessel of 17, 676 gross tons, M/V Hanjin-Inchon owned by Hanjin Shipping Co.Ltd in Seoul Korea left seattle in west coast of U.S.A for Pusan , Korea on the 5th Feb., 1987 and sailed along the exact courses recommended by Ocean Routes until she reported her position and speed as 49-30N, 158-00E and 8 knots to her head office in Seoul by this ship's time 2200 hours on the 13th Feb., 1987. The above message turned out to be last message from her because she had been missing since then leaving no message but only two life boats of her name, three containers cases, large scale of oil slicks and the corpse of her 3rd mate drifting on the sea near the position reported by her last message.

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An Empirical Study for the Safe and Effective Operations in Membrane LNG Ships focused on the Tank Cool Down

  • Gim, S.G.;Kim, S.W.
    • 유체기계공업학회:학술대회논문집
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    • 2005.12a
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    • pp.566-572
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    • 2005
  • The most crucial factor in membrane LNG ships to ensure sage operations, is how to effectively control tank pressure at the time of excessive generation of boil off gas (BOG). When the ships carry out tank cool down with her retaining heel prior to arrival at loading port, the vessel encounters the critical situation of excessive BOG and high tank pressure that can lead to high degree of risk. This is to provide one of the best ways to secure safe and effective LNG ship operations focusing on the detailed methods of tank cool down to achieve ATR(Arrival Temperature requirement) without building up high tank pressure and excessive BOG and calculating the appropriate heel quantity to be unutilized for tank cool down and fuel during ballast voyage.

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An Analysis of Shipping Industry Awareness and Its Implications (해운산업의 인지도 분석과 인식 제고 방안)

  • Lee, Tae-Hwee;So, Ae-Rim
    • Journal of Korea Port Economic Association
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    • v.37 no.4
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    • pp.41-50
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    • 2021
  • This study investigated what the general public thinks about the shipping industry and how important it is. As a result of the study, more than half of the respondents answered that they knew a little about the shipping industry or that they were normally knew about the shipping industry. Regarding the necessity of budget input to prevent bankruptcy of national shipping companies, it was found that more than half of the respondents answered that it was necessary or moderate. Regarding the necessity of maintaining a national shipping companies, 53% of respondents said it was necessary, and 23% of respondetns said it was normal. However, when asked if they thought that maintaining a national shipping companies would benefit me and my family, 39% of respondetns answered "normal" and 28% of respondetns answered "mostly". As for the cause of Hanjin Shipping's bankruptcy, 49% of respondents said that the owners' family members were immoral and incompetent, and 17.4% of respondetns said that the shipping market conditions deteriorated. Regarding the necessity of fostering the shipping industry, foreign currency acquisition and service balance improvement through export of shipping services accounted for 43.5%, and smooth transportation of import and export cargo accounted for 36.5%. When asked what kind of damage I suffered from Hajin Shipping's bankruptcy, 54.6% answered other (not much), and 14.5% said inflation. Abouve these results, this study gave implication in terms of public promotion and transparent business management.

Dynamics of Global Liner Shipping Network and Strategy of Korean Ports (국제 컨테이너 선대 운항네트워크 변화와 우리항만의 전략)

  • Park, Byungin
    • Journal of Korea Port Economic Association
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    • v.34 no.3
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    • pp.133-158
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    • 2018
  • The role and ratio of national vessels in the global container shipping market have reduced significantly due to the bankruptcy of Hanjin Shipping in early 2017. All import-export companies, as well as container ports in Korea, are facing a crisis. The Trump's tariff and trade battles have had a negative impact on the increase in the North American cargo. However, Chinese and Japanese container shipping companies, which merged with domestic container shipping companies, and mega carriers such as Maersk and CMA CGM have benefited from the decline in shipping supplies due to the collapse of Hanjin Shipping, the world's 10th largest container carrier in Korea. The import/export freight trade in Korea is witnessing the increasing stronghold of foreign carriers. This scenario is expected to weaken Korea's negotiation powers with overseas shipping companies in domestic ports, such as Busan and Kwangyang, thereby making it more challenging to attract shipping carriers. This study compares the global container-shipping network in 2007 and 2017 by combining the network topology of the social network analysis and the economics of the liner shipping connectivity index (LSCI) and the container port connectivity index (CPCI) analysis. The findings of this study are that the role of the ports across the world can be identified, and CPCI has a high correlation with the centrality index and freight volume data. These findings can contribute toward the utilization of the meaning of the necessary centrality index without an additional centrality analysis. This study can be applied not only to the call strategy of container carriers but also to the alliance and development strategy of Korean ports.

A Study on the Development of Crisis Response System in the Shipping Industry (해운산업 위기대응 체계 구축 방안)

  • Sung-Hwa Park;Hanna Kim
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2022.06a
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    • pp.367-368
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    • 2022
  • The shipping industry is sensitive to the global economy. Therefore, when events such as the global economic crisis occur, shipping market freight rates react immediately, and the long-term stagnation of the industry has been repeated accordingly. In particular, Hanjin Shipping's bankruptcy is an incident in which the nation has become aware of the chronic problems of the Korean shipping industry. The government is making great efforts to rebuild the collapsed shipping industry and become a global leader country. In order for the Korean shipping industry to grow into a global leader, it is important to appropriately respond to the crisis. To this end, it is necessary to establish and operate a crisis response system for the shipping industry at the national level.

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Rubber Packing Damage Test Report for Procedure of Forebody Erection in the Sea (해상탑재 DAM공법에 따른 선체외판 선저부위의 도막박리 및 밀림방지 대책)

  • Kim Young-Nam;Im Myung-Soo;Yea Weon-Bae
    • Special Issue of the Society of Naval Architects of Korea
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    • 2005.06a
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    • pp.144-150
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    • 2005
  • The size of ship is being larger than the past in the shipping industry thanks to the increased quantity of goods transported by ship. Therefore, HHIC (Hanjin Heavy industries & Construction co., LTD) invented innovative construction method, so called 'DAM', to build a ship which is longer than the length of the HHIC's dry dock. On Erection at the sea by the application of DAM Method, Squeezing & Detachment of A/F film may occur as a result of the wave and the constriction between A/F film pre-applied on the side shell and DAM's Rubber Packing. Thus, the test for finding the minimum curing time of A/F film was performed to protect Squeezing & Detachment of A/F film on the hull. To verify the soundness of paint and to find the optimum condition during the erection period of the DAM, laboratory test was carried out under no immersion condition through the application of various coatings on the Rubber Packing. And two methods were selected from the results of laboratory test for actual MOCK-UP Test. In addition, the test for the film profile per temperature of silicone A/F coat and the film Squeezing was performed.

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The Practical Use of Un Standard Message for cargo flow EDI (물류EDI 표준메세지 이용 방안)

  • 박남규;이태우
    • Journal of the Korean Institute of Navigation
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    • v.17 no.2
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    • pp.57-73
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    • 1993
  • Subject : The Practical Use of UN Standard Message for cargo flow EDI Writer : Park, Nam Kyu and Lee, Tae Woo It's necessary to prepare standard message which is agreed on among trading partners for EDI in container transport industry. Now KMPA is carrying out the EDI Project for establishing Korea Logistics Network. It is important to make standard message of documents using in transport industry to succesfully accomodate EDI. The objective of this study is to find out the method of UN standard message utility in Korea. For this study, the UN message guideline is primarily reviewed, and the process that Shipping Request being used in Hanjin Shipping Co. Ltd. is applied to UNSMs as case study. Generally the data format of EDIFACT is so complex and broad for inter-industry standard that the abstract of data format is usually used. Therefore, it is necessary to make the subset of standard message for Shipping Request in ocean industry. In the result of this study, that the ocean industry can use the subset of IFTMBF for Shipping Request is proved, and the subset is suggested. This thesis will contribute toward showing the practical way of standardrization of 350 documents using in trade, customs and transport sectors.

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Spatial Structure of Hinterlands and Forelands of Pusan Container Export Port: the Cases of 3 National Flag Carriers (부산 컨테이너 수출항의 배후지와 지향지의 공간구조)

  • Cho, Su-Kyung
    • Journal of the Korean Geographical Society
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    • v.28 no.3
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    • pp.247-267
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    • 1993
  • According to developing international economy since the World War II, the increase and competition of the national business is so empha-sized tht both the interest and the necessity about marine transportation playing the impor-thant role of international transportation are increased. Today, the container transportation, as called the innovation of marine transport has been prevailed since the 1970's. The purpose of this paper is to grasp the spatial structure of the hinterlands and forelands, its object is export container cargo at Pusan Export Port, as known for the transportation node of modern containerlization. In this study, for the purpose of grasping the relation between hinterlands and forelands of Korean export container cargo, first, I researched the transition of carloading about container cargo, the bistribution channel of cargo, the change of the items of container and the carlo-adings about transport route, secondly, I used the cluster analysis so as to group hinterlands according to the items of goods and forelands. The object of the analysis is container cargo of Choyang Line, Hanjin Shipping and Hyundai Merchant Marine of National Frag Carriers. The source materials used in this study are Trucking Data of Hanjin Co., Container Ren-tal Data of Samik Transport Co. and Transpor-ting Present Condition Tables of Hyundai Mer-chant Marine. 1. There are two kinds of the transport classi-fied by its form: FCL and LCL. In Pusan Con-tainer Export, a lot of textile goods, clothings and furniture, compound, electric goods, and so on are dealed with but the rate of occupation of the transport is getting lower while that of occupation of equipment, papers and agricultu-ral, mineral and livestock industry higher. 2. In 1990, the transports of container cargo in Korea consist of 7 services and round-the world lines. We can list North America lines, East-South Asian lines, Japan lines and Inter European lines, in order of the quantity of tran-sport form the largest to the smaller. We can have another list that Japan lines, North Ame-rica lines and East-South lines in order of the rate participation of national flag carriers, be-cacuse Korean foreign trade lay disproportionate emphasis on East-South Asian lines. Japan lines among them is the biggest import-export market. Since the rationlization policy of marine tran-sport in 1984, each of national flag carriers have its own lines. Hanjin Shipping predominates over North America lines, Choyang Line over New Zealand, Inter European and Austria lines and Hyundai Merchant Marine over Center-South America lines, in terms of the volume of transport. And small-to-medium sized shippers are prevailing in lines which are adjacent to Korea, Such as Japan lines and East-South Asian lines. 3. In relation to hinterlands and forelands of Choyang Line, the light industry goods, electric goods and machinary produced in Seoul and Pusan are exported to the major ports in Europe and Japan, the same produces in Suwon, Ulsan, Kumi are exported to European Ports, and those in Incheon and Kwangju Austrian and Japanese ports, and those in the rest regions to the major port in Japan. 4. In relation to hinterlands and forelands of Hanjin Shipping, the light industry goods pro-ducing in Seoul and Pusan, the electric goods and machinary in Incheon and Pyeongteck, are exported to New York and Los Angeles. Electric goods and machinary Masan, Anyang, Cheona, Cheongju and Incheon, Electric goods machinary and light industry goods in Kwangju and non mental goods in Pohang, are exported New York, Los Angeles and Oakland. 5. In relation to hinterlands and forelands of Hyundai Merchant Marine, the region of Seoul, Pusan and Incheon closely related with the main ports in U.S.A. The rest regions with Montreal. The hinterlands of export container cargo can be classified by its export items into three kinds: the large city, industrial city and the rest city. Choyang Line's forelands are European lines, Japan lines and Austria lines, and Hanjin Shipping's forelands are North America lines, and Hyundai Merchant Marine's forelands are North America lines and Japan line. 3 National flag carriers' major forelands are determined by the size of port and the shipper's convenient use of the port terminal.

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