Fears persist of potential Yang Ming failure

Some freight forwarders that fear a repeat of the chaos surrounding the collapse of Hanjin Shipping last year are said to be wary of using Taiwanese container carrier Yang Ming, in particular, some small freight forwarders whose businesses could potentially be threatened in the event that containers are caught up in any possible future bankruptcy event, are preferring to use other carriers.

Some analysts maintain there is little or no chance that Yang Ming will go the same way as Hanjin, chiefly because they expect that the Taiwanese government would intervene and bail out Yang Ming..

But Patrik Berglund, CEO of the benchmarking and market intelligence platform Xeneta, questioned whether the Taiwanese container line was financially stable yet – and how easily consortium members of The Alliance would cope with any future bankruptcy among one of its members. He questioned Yang Ming’s assurances that the line would be returning to profitability in 2017. “That’s not necessarily true,” he said.

(Lloyd’s List)