The state to the rescue
The collapse of the South Korean shipping line Hanjin was the latest wake-up call for the shipping industry. The situation of most lines currently remains rather insecure. Now the Taiwanese government has decided to step in.
Evergreen and Yang Ming, the two largest Taiwanese shipping lines, both reported rather unsatisfactory results recently – a development that prompted the national government to decide that it would provide the country’s shipping industry with loans amounting to around TWD 60 billion (USD 1.9 billion), according to Taiwan’s Central News Agency.
Transport and communications ministry deputy director general Yeh Hsieh-lung was quoted as saying that “the global shipping industry is sailing in very rough seas at the moment. These loans have been designed to support Taiwanese lines, amongst other firms, that have been making losses for at least four successive quarters.”
Evergreen (which Alphaliner says is currently the fifth-largest container shipping line worldwide) and Yang Ming (the ninth-largest; see also page 14) would thus be entitled to participate in the project and apply for low-interest loans. If approved they would be disbursed at the beginning of 2017. News has it that Evergreen has already reacted positively to the latest government announcement.