In a bid to boost liquidity and put itself in a much more positive financial position amid falling freight rates, South Korean carrier Hanjin Shipping has now sold its stake in Busan terminal, according to the Journal of Commerce.
Jay Ryu, Analyst of KDB Daewoo Securities said that while Hanjin Shipping's asset sales are gaining traction, the company can sustain earnings as freight rates begin to recover. Mr Ryu expects the companies earnings to hold at US$258-345 million.
Ryu said: “Freight rates have recently been picking up, meaning the company will likely stay in the black in Q4, 2015. However, whether the pick-up is sustainable remains to be seen.
“We do note that expectations of slower capacity growth have been rising due to increased idling as well as Maersk’s decision to delay orders for new mega-ships. A turnaround in market conditions will be critical in the coming year.”
In June, 2013 Hanjin sold half its stake in Hanjin Newport for more than US$264 million to IMM Investment.
