Hanjing Shipping, South Korea’s largest shipping company, filed for bankruptcy on August 31, causing turmoil on the international shipping market. Recently, rumours in China are starting to grow that Japanese shipping giant K-Line is also struggling and could, perhaps, file for bankruptcy soon too. People involved in China’s import and export markets are now warning each other to avoid using the company’s shipping services.
Kawasaki Kisen Kaisha (K-Line) was established in 1919. It was one of the first foreign companies to enter the Chinese shipping market and currently operates around 400 vessels worldwide. The company is currently ranked, by capacity, as the world’s 16th largest shipping line.
The company has been performing poorly in recent years and has recently published an outlook that is not predicting much improvement for the coming two years. Singaporean investment fund Effissimo Capital Management increased its stake in the Japanese shipper in June this year to 34.1%. It is now the company’s largest shareholder and has obtained the right to veto proposals at shareholder meetings.
