Bulk ship operator Korea Line has filed for court receivership to avoid bankruptcy, it said Thursday. Bulk ships transport timber, iron ore, grains and other large-volume cargo.
The company had been in financial difficulties due to dwindling vessel charter rates. During the bulk shipping boom in 2007-2008, Korea Line drastically expanded charter services by borrowing ships from other companies. But charter rates, which were around US$100,000 a day, dropped to around $20,000 after the 2008 financial crisis, said a shipping industry source.
Korea Line is the country’s fourth-largest shipping company after Hanjin Shipping, Hyundai Merchant Marine and STX Pan Ocean.